GVK Power & Infrastructure Limited (GVKPIL) has announced its unaudited standalone and consolidated financial results for the quarter ended June 30, as approved by the board on August 13. The company, currently under Corporate Insolvency Resolution Process (CIRP), faces significant financial challenges and ongoing legal proceedings.

Financial Performance

For the quarter ended June 30, GVKPIL reported the following consolidated results:

On a standalone basis, the company's performance for the same quarter was as follows:

Corporate Insolvency Resolution Process

GVKPIL entered CIRP following a National Company Law Tribunal (NCLT) order dated July 12, 2024. The Resolution Professional has received claims worth ₹21,79,248.00 lakh from financial creditors, of which ₹15,94,489.00 lakh has been admitted for CIRP purposes.

Key Developments

Deconsolidation of Subsidiaries

The company has lost control over GVK Energy Limited (GVKEL) and its subsidiaries, resulting in their deconsolidation from May 06. This led to a loss of ₹1,04,158.00 lakh recognized in the consolidated financial results.

Resolution Plans

The Resolution Professional invited resolution plans, but the Committee of Creditors (CoC) rejected two proposals as non-compliant. The CoC has resolved to re-initiate the CIRP process based on an asset-wise sale approach.

Ongoing Litigations

The company faces multiple legal challenges, including investigations by government agencies and proceedings related to its overseas coal project.

Debt and Guarantees

GVKPIL has provided guarantees for loans taken by GVK Coal Developers (Singapore) Pte. Limited, with claims admitted by the Resolution Professional amounting to ₹14,89,486.00 lakh.

Annual General Meeting

The 31st Annual General Meeting of the Company is scheduled for September 30, to consider and adopt the audited financial statements for the year ended March 31.

Outlook

The company's ability to continue as a going concern remains uncertain due to accumulated losses, liabilities exceeding assets, and ongoing legal and financial challenges. The outcome of the CIRP process will be crucial in determining GVKPIL's future operations and financial stability.

Investors and stakeholders are advised to closely monitor further developments in the CIRP process and ongoing legal proceedings, as these will significantly impact the company's future.

GVK Power & Infrastructure , currently undergoing Corporate Insolvency Resolution Process (CIRP), has released a provisional list of 13 Prospective Resolution Applicants (PRAs) for its assets. The company, which was admitted into CIRP under the Insolvency and Bankruptcy Code, 2016, has attracted interest from various prominent entities across five asset categories.

Asset Categories and Notable Bidders

The company invited expressions of interest for the following asset categories:

1. Category I: The entire corporate debtor as a going concern
2. Category II: 100% shareholding in GVK Perambalur SEZ Private Limited
3. Category III: 1.75% shareholding in GVK Airport Developers Limited (GVKADL)
4. Category IV: 100% shareholding in GVK Energy Limited (currently under CIRP)
5. Category V: Corporate debtor with residuary assets, excluding shareholdings in the above-mentioned subsidiaries

Among the notable bidders, Jindal Power Limited and Hindustan Thermalprojects Ltd have shown interest in all five asset categories. Other significant applicants include:

• Adani Airport Holdings Limited, bidding for the 1.75% stake in GVKADL
• JSW Projects Limited, expressing interest in the 100% shareholding of GVK Perambalur SEZ Private Limited
• A consortium of J Kumar Developers Limited & J Kumar Software Systems (India) Private Limited (10%-90%) for Category I

Diverse Interest Across Categories

The provisional list reveals a diverse range of interested parties across various sectors:

Next Steps in the Resolution Process

The Resolution Professional, Satish Kumar Gupta, has stated that the list is subject to clarifications from the EOI Applicants and Provisional PRAs. Interested parties have until July 30, 2025, to submit any objections to the inclusion or exclusion of PRAs in the provisional list.

This development marks a significant step in GVK Power & Infrastructure's insolvency resolution process, attracting potential investors across various segments of its business. The final list of approved resolution applicants will be crucial in determining the future of the company and its assets.

As the process unfolds, stakeholders will be keenly watching how these expressions of interest translate into concrete resolution plans for GVK Power & Infrastructure.