Adani, RIL Skip auction of Lanco units citing IBC rule | News Bharat

India’s two largest corporations Adani Group and Reliance Industries, which were set to go head-to-head in the auction for Lanco stake, did not participate in the third round of bidding on Wednesday. The auction for the insolvent Lanco Amarkantak Power has invited three restructuring candidates – Adani Power, Reliance Industries and the Power Finance Corporation-REC team – to bid in the auction.

The two firms told restructuring specialist Lanco that the proposed “challenge mechanism” violated rules governing the Insolvency and Bankruptcy Code (IBC). According to an Economic Times report, both the corporate houses said there is no such provision in the existing law.

A third bidder, the Power Finance Corporation-REC team, offered Rs 3,020 crore as cash payment on Wednesday. The PFC-REC combine also holds 41% of the debt in Lanco Amarkantak, giving it a bigger say in the resolution process.

In the second round of bidding, Adani Group gave the highest bid of Rs 2,950 crore in advance payment. While Reliance Industries submitted an offer of Rs 2,000 crore under the prepayment plan, the PFC-REC pairing offered Rs 3,870 crore over the next 10-12 years.

RIL and Adani Group will also compete to own Future Retail and SKS Power. Interest has already been expressed for these two companies.

Lanco operates thermal power generation schemes in Chhattisgarh. The first phase of the Korba Champa State Highway block has been commissioned and the second phase is under construction.

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