Bharti Enterprises founder Sunil Mittal and other insitituitional shareholders are working on a revival plan for CG Power and Industrial Solutions, according to a report by ET.
Investors, led by Mittal’s SBM Holdings, are considering injecting working capital into CG Power and are in talks with lenders to recast loans, the report said.
The investors who might put in more funds are insisting that a new management be appointed that has no links to Gautam Thapar-led Avantha Group, the report said.
The investors have also refused to clear CG Power’s loans after allegations of accounting fraud against Gautam Thapar, who was ousted as the company’s Chairman.
As of June 30, SBM Holdings’ stake in CG Power is 8.3 percent. SBM Holdings is considering buying more shares to increase its holding, the report said.
“The idea is to take over management control and revive the company. The domestic assets and businesses are very attractive,” a source told the publication.
A spokesperson for Bharti Group declined to comment when approached by The Economic Times. CG Power has not yet responded to a request for comment.
“The equity investors are working with the lenders to recast the loans, and it is likely that the banks will be forced to take a haircut,” a source told the paper.
CG Power’s total debt is estimated at Rs 1,600-1,700 crore, the report said.―Money Control