Common use of Financial Restructuring Plan Clause in Contracts

Financial Restructuring Plan. Achieving financial sustainability of the sector is a key objective of GOA's power reforms. Prior to unbundling, ▇▇▇▇’s high-cost structure, e.g., sub- optimal billing and collection, significantly undermined its financial health. Chronic defaults on payments to most of its creditors and suppliers resulted in a large burden of accumulated debts. To restore the financial viability of the power sector, GOA initiated a financial restructuring plan (FRP) in 2003, focusing on debt restructuring and transitional financial support to enable the new companies to start with a clean slate. The FRP indicated that ASEB would require transitional support to meet a projected shortfall of Rs2.71 billion. The FRP involved a total restructuring adjustment of Rs45.6 billion, comprising a noncash settlement of Rs34.0 billion and Rs11.6 billion for liabilities involving cash settlement. Supported by the APSDP, GOA successfully completed the FRP in 2008.

Financial Restructuring Plan. Achieving financial sustainability of the sector is a key objective of GOA's power reforms. Prior to unbundling, ▇▇▇▇ASEB’s high-cost structure, e.g., sub- optimal billing and collection, significantly undermined its financial health. Chronic defaults on payments to most of its creditors and suppliers resulted in a large burden of accumulated debts. To restore the financial viability of the power sector, GOA initiated a financial restructuring plan (FRP) in 2003, focusing on debt restructuring and transitional financial support to enable the new companies to start with a clean slate. The FRP indicated that ASEB would require transitional support to meet a projected shortfall of Rs2.71 billion. The FRP involved a total restructuring adjustment of Rs45.6 billion, comprising a noncash settlement of Rs34.0 billion and Rs11.6 billion for liabilities involving cash settlement. Supported by the APSDP, GOA successfully completed the FRP in 2008.