NCLAT approves Adani's ₹650-cr bid for Dighi Port

In an attempt to bail out the debt-ridden Dighi Port in the south of Mumbai, the National Company Law Appellate Tribunal (NCLAT) has approved ₹650-crore resolution plan submitted by Adani Ports & Special Economic Zone (APSEZ). The resolution came with a huge 79.2 percent haircut to the lenders. The successful bid will give Adani access to Maharashtra, where it had no presence, even though the group straddles the entire coastline of the country with 11 operational ports and an under-construction trans-shipment terminal at Vizhinjam in southern Kerala. It is worth mentioning here that Dighi Port was the first port to announce bankruptcy two years ago. The 16-member committee of creditors (CoC) led by Bank of India, which collectively has 99.68 percent voting shares, has approved APSEZ's revised offer of an upfront cash payout. Dighi Port, promoted by industrialist Vijay Kalantri, owes ₹3,098 crore to the lenders and had made an offer of ₹720 crore, but was rejected by the lenders. Bids by JNPT, APSEZ and Veritas Consortium were considered by the CoC initially but it finally decided on APSEZ as the Adani Group came up with the highest bid. APSEZ is the largest port operator in the private sector with 11 facilities across the west and east coasts, and operates the country's largest container terminal at Kandla in Gujarat.