Lenders pick PFC-REC offer for LancoAmarkantak Power

The majority of lenders to LancoAmarkantak Power have voted in favour of an offer from the Power Finance Corp (PFC)-REC team, whose debt-resolution plan garnered the most support in a bidding competition. The team earned 95 per cent of the lender votes based on debt value, while Adani Power received 17 per cent. Reliance Industries, the third competing bidder, did not receive any votes. In addition to having a 42 per cent debt exposure to LancoAmarkantak Power, the PFC-REC team had a veto over the choices made by the committee of creditors due to its 42 per cent debt exposure. According to the statutes governing corporate insolvency, no decision can be made until 66 per cent of lenders agree it.