The terms of JSW Energy Ltd’s acquisition of Monnet Power Co. Ltd, a unit of Monnet Ispat Energy Ltd, from a consortium of lenders are about to be finalized, two bankers familiar with the discussions said.
The lending consortium to Monnet Ispat Energy had decided to invoke powers under the strategic debt restructuring (SDR) norms of the Reserve Bank of India (RBI) to convert part of the company’s debt into majority equity. Under SDR, bankers had decided to convert Rs.815 crore worth of debt to majority equity in Monnet Power; this stake would be transferred to JSW Energy, as part of the current proposal, the first banker cited above said.
