According to news reports, Adani Ports and Special Economic Zones and Vedanta group firms filed legally binding cash bids for Karaikal Port on September 30 at the close of the bidding window. Five parties expressed interest in the 600-acre port in August, including the two firms.
Debt worth Rs2,960 crore is unpaid by Karaikal Port. On April 29, a court in Chennai by the National Company Law Tribunal (NCLT) accepted it for insolvency proceedings. JSW Infra, Jindal Power, and a group comprising RKG Fund and Sagacious Capital are the other three.
At a meeting of the creditors’ committee on Monday, two final offers will be revealed.
In the union territory of Puducherry is the Karaikal Port.
A public-private partnership between the Puducherry government and MARG, an infrastructure developer headquartered in Chennai and backed by former merchant banker GRK Reddy, resulted in the development of the all-weather water port Karaikal Port. To develop the port, MARG Limited has established a special purpose vehicle. 2009 saw the opening of the port.
It has handled a variety of cargoes, including liquid cargo, containers, project cargo, agro commodities, coal, sugar, cement, and fertilizers. A loan of Rs1,362 crore was initially approved for the Karaikal Port by a group of eleven lenders, all of whom were public sector banks or financial organisations. As interest and penalties continued to accumulate due to irregular repayment schedules, the loan grew to its current size.
In 2015, loans from nine of the eleven lenders were sold to Edelweiss Asset Reconstruction Company. Corporation Bank and State Bank of Hyderabad were the only two institutions that did not sell their debt.
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