Heading for liquidation? No bidders for Monnet Power

Heading for liquidation? No bidders for Monnet Power

Bankrupt Monnet Power appears headed to liquidation with no bidder turning up on the final day to submit bids, which also raises questions about faith in the administration’s ability to resolve the stress in the sector, said two people familiar with the matter.

The Resolution Professional has called for a meeting with the Committee of Creditors on June 19 to evaluate options which include going for another round of bidding, or wait for government action on transfer of dud loans to a bad bank, said people who did not want to be identified.

Lenders from ICICI Bank to Axis Bank to state-run Central Bank of India and others stare at a huge loss in the account. Monnet Power owes Rs 7,652 crore to lenders. Monnet Power is an 88% subsidiary of Monnet Ispat, a steel producer which is also in receivership. Read More

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