KSK Water Infra's Insolvency Process Withdrawn

New Delhi, Jun 23 (PTI) The Committee of Creditors has cleared a proposal to withdraw the insolvency resolution process of KSK Water Infrastructures Private Limited (KWIPL) after approving a debt settlement proposal submitted by JSW Energy.

On March 6, JSW Energy Limited said it had completed the acquisition of KSK Mahanadi Power Company Limited (KMPCL) under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016.

The resolution plan has now been implemented, and consequently, KMPCL has become a subsidiary of the company. As per the terms of the resolution plan, JSW Energy will hold 74 per cent of equity shares of KMPCL and the secured financial creditors collectively hold the balance 26 per cent equity shares.

In a filing on Monday, JSW Energy said it became the holding company of KMPCL and holds significant indirect ownership in KSK Water Infrastructures Private Limited (KWIPL), which is under the corporate insolvency resolution process.

"We wish to inform that the proposal for the settlement of the debt of KWIPL submitted by the company has been approved by the Committee of Creditors (CoC) and accordingly, the CoC has approved the withdrawal of the insolvency resolution process of KWIPL," JSW Energy said.

The closure of the transaction shall be subject to the receipt of approval of withdrawal by the National Company Law Tribunal, it added.