Ousted Chairman of CG Power, Gautam Thapar, is likely to exercise his right to buy back pledged shares of the firm, reported Mint, citing two people directly aware of the matter. This is as per an internal agreement, which was prepared in 2017, between Thapar and a section of CG Power’s lenders, including private equity fund KKR & Co. and L&T Finance, said the report.
Thapar, who is accused of financial impropriety and corporate governance lapses at CG Power, has already approached market regulator Sebi and corporate affairs ministry regarding this, the report added.
“While the pledge has been invoked by Vistra ITCL, the debenture trustee, (Thapar’s) Avantha Holdings will continue to have the right to require a re-transfer of the shares to itself upon repayment of the debt," one of the sources was quoted saying in the report.
“If invoked, the said clause in the bilateral structured credit deal signed between KKR and L&T Finance with Thapar’s Avantha Holdings could give Gautam Thapar around 10 percent stake in the company," another source was quoted as saying in the report.