Luthra on $3.5bn Power Finance Corporation-KSK project financing

Monday, 21 February 2011 By Legally India Projects

Luthra & Luthra has advised a Power Finance Corporation-led consortium of 27 lenders to fund KSK Mahanadi’s Rs 16,190 crore power project in the state of Chhattisgarh.

Luthra’s recently promoted Delhi-based partner Piyush Mishra was supported by projects finance partner Sameen Vyas on the transaction and his team consisted of Nishant Beniwal and Ajay Sondhi, according to the firm.

The borrower KSK Mahanadi Power received Rs 12,142 crores in the form of senior secured syndicated rupee term and letter of credit facility for construction and operation of a 3600 MW (6x 600 MW) coal-based thermal power project from the non-banking financial institution Power Finance.

No other external legal advisers were involved on the transaction, said a Luthra spokesperson.

Luthra & LuthraL&L Partners

Comments

Anonymous guest 22 Feb 2011, 04:11
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How much would have Luthra charged as its legal fee for this transaction?
Anonymous guest 22 Feb 2011, 07:48
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2 % of the deal size.
Anonymous guest 22 Feb 2011, 14:35
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@2 This is crazy! can't be that much! Luthra would not be touching that much revenues in a year from all its offices put together!
Anonymous guest 23 Feb 2011, 00:17
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Law Firms earn a fixed fee and do not have any percentage of the Debt amount. It is the arrangers who pocket anywhere between 1 and 2 percent..
Anonymous guest 24 Feb 2011, 00:48
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@4 Fixed fee.. Luthra would have charged INR 25 lacs for this transaction?
Anonymous guest 1 Mar 2011, 15:33
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Fees for advising on PFC fronted financings is almost always peanuts. Good to get the profile up and move higher on the project finance rankings but not very good in revenue and profit terms. Many established firms stay clear of these mandates for those reasons.
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