JSW Energy Settles KSK Mahanadi Debt, Awaits NCLT Nod To Close Acquisition

JSW Energy Ltd. on Monday said it has settled the outstanding debt of KSK Mahanadi Power Co. Ltd. with creditors, marking a key milestone in its acquisition of the distressed power producer. The company added that the committee of creditors has approved withdrawal of the insolvency proceedings, as per an exchange filing.

The transaction will be closed after the National Company Law Tribunal approves the withdrawal application. In March, JSW Energy had announced that it would acquire KSK Mahanadi Power by paying ₹160.84 billion to creditors. The deal gives JSW Energy a 74% stake in the company, while secured lenders retain the remaining 26% under the approved resolution plan.

With the deal, JSW Energy adds KSK Mahanadi’s 3,600-megawatt thermal power plant in Chhattisgarh to its portfolio. The NCLT’s Hyderabad bench had cleared the resolution plan on February 13.