The National Company Law Appellate Tribunal (NCLAT) in Chennai has temporarily halted the acquisition of Coastal Energen by a consortium led by Adani Power. This decision follows appeals from Ahmed Buhari, a suspended director of Coastal Energen, and shareholders Precious Energy Holdings and Mutiara Energy Holdings. They contested the takeover, arguing that due process was not followed and that the consortium was a sham.
The NCLAT has ordered that Coastal Energen's power plant in Thoothukudi, Tamil Nadu, will continue to be managed by the Interim Resolution Professional until the next hearing on September 18.
Coastal Energen, established in 2004, is the power generation subsidiary of the Coal & Oil Group, which was founded by Ahmed Buhari in the 1980s. The company operates a significant coal-based thermal power plant in Thoothukudi, Tamil Nadu.
Last week, Adani Power Ltd. consortium, in which Adani Power holds 49% stake, completed the acquisition of Coastal Energen Pvt. for Rs 3,330.88 crore, which was part of a resolution plan approved by the National Company Law Tribunal (NCLT).
Ahmed Buhari, a suspended director of Coastal Energen, along with shareholders Precious Energy Holdings and Mutiara Energy Holdings, filed appeals against the. . They argued that the due process was not followed during the takeover.
The appellants claimed that the consortium led by Adani Power was a sham and that the acquisition process lacked transparency.
To ensure the smooth operation of Coastal Energen’s power plant in Thoothukudi, Tamil Nadu, the NCLAT has decided that the plant will continue to be managed by the Interim Resolution Professional until the next hearing.
The next hearing is scheduled for September 18, where further deliberations will take place.
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