Deal/Matter Update – Gravitas Legal

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Gravitas Legal, representing THDC India Limited (a Mini-Ratna Enterprise), has successfully procured re-running of CIRP of Athena Demwe and an opportunity for THDC to participate in resolution process, after commencement of CIRP in 2017.

Athena Demwe Power Limited (Athena Demwe) was admitted into Corporate Insolvency Resolution Process (CIRP) in September 2017. Despite the resolution plan of one Successful Resolution Applicant (SRA) having been approved in June 2018 by Committee of Creditors, no resolution could be achieved even as of the 5th anniversary of the CIRP commencement.

In the meanwhile, considering the inability of private players (as also noted in the Report of the Standing Committee of Energy (2018-2019) to the 16th Lok Sabha) to implement hydro projects (including the Demwe Project, having national importance), THDC received directions from the highest corridors of the Government of India and other departments to participate in the CIRP of Athena Demwe and develop the 1750 MW Hydro Electric Power Project at river Lohit, Lower Demwe (Demwe Project). Owing to the same, THDC had filed its Application (IA No. 2230 of 2022 in CP No. (IB)244(ND) of 2017) seeking an opportunity to participate in the CIRP of Athena Demwe and submit its resolution plan. The Adjudicating Authority has, noting the assertions made by THDC (including as to feasibility and viability) and non-compliances by SRA regarding provision of performance guarantee, granted indulgence to THDC and vide its Order dated April 9, 2024 allowed the Application of THDC. Adjudicating Authority has directed re-running and conclusion of CIRP of Athena Demwe within 120 days.

The Gravitas Legal team representing THDC India Limited comprises Tanuj Sud, Ajay Kumar, Stuti Vatsa, Vaibhav Tiwari and Vijayant Goel.



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