Search the Internet          Tips  Sites: Finance, Investment

HC to appoint receiver for DPC

The Bombay high court on Thursday restrained Enron-promoted Dabhol Power Company from filing bankruptcy proceedings in an American court and agreed to appoint a receiver to preserve the company's assets in India.

The court granted a request by a consortium of Indian creditors which have provided -- directly and through guarantees -- the bulk of the $1.9 billion in loans to the project.

Indian lenders include IDBI, State Bank of India and ICICI Ltd.

The massive 2,184 MW Dabhol plant, the largest liquefied natural gas-fuelled plant ever built, is located about 250 km south of Mumbai and is one of Enron's largest assets still to be sold.

A jubilant IDBI chairman P P Vora said that the FIs welcomed the court's decision and "we will work towards the court order in letter and spirit."

"We will decide our next course of action within a week," he added.

On the other hand, DPC managing director Mohan Gurunath said he had no comments to offer as a copy of the court order was awaited.

The judge accepted the assurance of IDBI's counsel Harish Salve that the court receiver would be put in charge of DPC's funds.

(With additional inputs from PTI)

ALSO READ:
The Enron Saga
The Rediff Budget Special
Money

Tell us what you think of this report