Turnaround of SKS Power
How strategic interventions transformed a distressed thermal power plant with INR 2,500 Cr debt into a profitable asset, achieving 100% creditor recovery.
SKS Power Generation (Chhattisgarh) Limited faced a critical existential crisis, burdened by approximately INR 2,500 crores in debt and halted operations for over six months due to a lack of working capital. The company was crippled by unprofitable Power Purchase Agreements (PPAs), unresolved disputes with Discoms, and a severe leadership void following the exodus of key management. Without immediate intervention, the asset was a significant financial drain with no coal linkage to support viable generation and onerous contracts blocking new opportunities.
Under the stewardship of Resolution Professional Ashish Rathi and the Accomplir Advisors team, the company underwent a rapid operational turnaround during the Corporate Insolvency Resolution Process (CIRP). By securing crucial linkage coal to reduce generation costs, renegotiating onerous contracts, and resolving long-standing disputes, the plant was restarted within just 2.5 months. Strategic moves, such as entering new profitable PPAs, raising interim finance, and appointing NTPC for Operations & Maintenance, stabilized the ship and restored stakeholder confidence.
The outcome set a benchmark for the power sector under the IBC. The interventions resulted in peak revenues of ~INR 1,300 crores and an EBITDA of ~25%, creating a self-sustaining entity that required no external funding for operations. Ultimately, this efficient management facilitated a resolution plan offering 100% recovery to financial creditors—a rare testament to the value of strategic operational restructuring.