The Hyderabad National Company Law Tribunal last week approved Vedanta's bid to acquire Meenakshi Energy through the insolvency resolution process.

The Anil Agarwal company offered Rs. 1,440 crore against admitted claims of Rs. 4,625 crore, resulting in a 31% recovery split among lenders, trade creditors, and employees.

According to court documents, two other bidders for the distressed thermal plant were Jindal Power and a consortium of Prudent Asset Reconstruction Company and Vizag Minerals. According to sources on November 1, 2022, the government-sponsored National Asset Reconstruction Company offered 1,003 crore to acquire lenders' debt. Lenders, however, declined the offer because Vedanta's was higher.

Vedanta's resolution plan stands approved by a majority of 94.96% of the committee of creditors (CoC), according to an order uploaded by the bankruptcy court.
Vedanta submitted a plan on August 29, 2022, which was amended on October 28. Again, on December 26, Vedanta submitted an improved offer - from ₹650 crore to ₹1,440 crore, the court order showed.

However, lenders did not accept Vedanta's offer right away. They decided to give other bidders an equal chance to submit a better offer. They decided to run a challenge process on December 29, and Vedanta emerged as the highest bidder, as reported on January 7.

Lenders will receive 1,143 crore of the 1,440 crore offer against their admitted claims of 3,778 crore, implying a 30% recovery. Vedanta will make an initial payment of 312 crore, with the remainder spread out over five to seven years.

Vedanta's offer is higher than the average liquidation value of 1,100 crore but lower than the average fair value of 2,150 crore.