Partner Channels: Auto | Bill Pay | IT Education | Jobs | Lifestyle | Technology | Travel
May 11, 2001
|
|
|
|
|
|
||
|
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Wedding | Women Partner Channels: Auto | Bill Pay | IT Education | Jobs | Lifestyle | Technology | Travel |
||
|
|
||
|
Home >
Money > Business Headlines > Report May 11, 2001 |
Feedback
|
|
|
DPC mounts pressure on lenders to terminate PPAS Ravindran The Enron-promoted Dabhol Power Company has stepped up pressure on lenders to permit it, without further delay, to terminate the power purchase agreement with the Maharashtra State Electricity Board. The company has reportedly told the lenders that there should not be any delay in serving the termination notice as the engineering procurement and construction contractor Bechtel has threatened to pull out of the project on June 11. Bechtel holds a 10 per cent stake in the project. The lenders are, however, not yet ready to back DPC's demand. They are of the opinion that phase two of the project should be completed first. The MSEB decision to clear the April bill (Rs 1.39 billion) has also come as a shot in the arm for lenders. "Financially, phase two is 93 per cent completed while 97 per cent of the physical construction is over. The lenders want the project to be completed without any cost and time overrun. At this juncture, if the PPA termination notice is served, it will preclude any further disbursements by the lenders," a source familiar with the development said. DPC spokesperson declined to comment on the development. A fully completed phase two will be in the lenders' interest, as they will inherit the project if it is terminated. The lenders have first charge on the assets of DPC. A fully completed project will enable the lenders to find a buyer and secure a better valuation. Earlier, on April 23 and April 24, DPC had sought the consent of its consortium of lenders at a meeting in London to terminate the PPA. This meeting was held amidst the backdrop of MSEB defaulting on its payments to DPC and the Centre failing to honour the counter guarantee for the December bill of Rs 1.02 billion. The meeting witnessed a sharp division in the ranks of the domestic and offshore lenders. The offshore lenders were all for backing the DPC move as their exposure is covered by the Centre's counter guarantee, if the PPA and project are terminated. Powered by YOU MAY ALSO WANT TO SEE:
ALSO READ:
|
||||
