Mumbai, Apr 19: Domestic lenders to Enron Corporation's $2.9 billion Dabhol power plant will meet on Monday to decide how to tackle arbitration proceedings initiated by foreign creditors trying to recover their loans to the stalled project. The nearly a dozen foreign lenders to Dabhol Power Company (DPC) initiated arbitration against the domestic lenders in a London court on Thursday after failing to agree on a future for the plant.
"We are meeting our lawyers on Monday to consult and strategise about what the next move will be in the face of these arbitration proceedings," a senior official at a domestic lender said on Saturday.
The foreign lenders, led by ABN AMRO Bank of the Netherlands, initiated the arbitration action under international law against the Industrial Development Bank of India (IDBI), ICICI Bank, State Bank of India and IFCI.
The move comes after the foreign lenders told Dabhol this month to scrap its power sale agreement with its sole customer, the Maharashtra State Electricity Board (MSEB), a legal step that would force the loss-making board to take over the plant.
Bureau Report