GVK Power Insolvency: CoC Weighs Liquidation in 2026

GVK Power & Infrastructure Ltd is at a critical point in its insolvency process. The company, once the listed holding company for a broad infrastructure portfolio, reported nil operating income in FY26 and remains under the Corporate Insolvency Resolution Process, or CIRP. At its 32nd annual general meeting on September 30, 2026, the company disclosed that two resolution plans had been rejected for non-compliance. A subsequent asset-wise CIRP round also did not receive a compliant plan within the approved timelines. The Committee of Creditors, or CoC, is now considering whether to start another CIRP round or move towards liquidation under the Insolvency and Bankruptcy Code, 2016. The decision matters because the listed parent’s remaining value depends on the treatment and sale of residual assets against substantial admitted claims.

CIRP has suspended the company’s board

GVK Power & Infrastructure has been in CIRP since July 12, 2024, following an order of the National Company Law Tribunal, or NCLT. The process was initiated by ICICI Bank in connection with a loan related to an Australian coal project that did not materialise. Under Section 17 of the IBC, the board’s powers stand suspended and are exercised by the Resolution Professional. This means the company’s strategic and operational decisions are being handled through the court-supervised resolution framework. The listed parent is therefore no longer being managed through its former board structure. The current process is focused on finding an acceptable resolution outcome for creditors or, if that fails, proceeding under the liquidation provisions of the IBC.

Two rounds produced no compliant plan

The Resolution Professional stated at the AGM that two plans received in the initial CIRP round were rejected because they did not comply with the required conditions. A second process, structured around asset-wise resolution, also failed to produce a compliant resolution plan within the approved period. This has left the CoC with two broad choices: seek another attempt at resolution or begin formal liquidation. No final decision on either route was disclosed in the available information. The absence of an approved plan keeps the outcome for creditors and shareholders unresolved. It also extends uncertainty around how individual assets, commitments and liabilities may ultimately be addressed.

Operating income was nil in FY26

The company reported nil operating income for FY26. It has stated that its airport business is closed and that the outlook for its energy and transportation businesses is bleak. This reflects the sharp contraction of a group that previously held interests across infrastructure segments. GVK Power & Infrastructure now functions within a far narrower operating base than it did during its expansion years. The financial position is further complicated by insolvency proceedings involving subsidiaries and associates, as well as several loan accounts classified as non-performing assets. These developments limit the scope for a conventional operating turnaround at the listed holding company.

Loss of control reshaped consolidated accounts

The company lost control over GVK Energy Ltd and its subsidiaries after their admission into CIRP in May 2025. As a result, GVK Power & Infrastructure deconsolidated their assets and liabilities from its consolidated financial statements. The deconsolidation led to an exceptional loss of ₹1,041.58 crore. GVK Transportation Pvt Ltd had earlier entered CIRP in August 2024, resulting in its deconsolidation and an exceptional gain of ₹599.56 crore in the previous year. These accounting effects underline how insolvency proceedings at project companies have changed the parent’s consolidated financial profile. They do not, by themselves, establish a recovery value for creditors or equity holders.

Subsidiary insolvencies add to pressure

The group’s project-company structure has become a central issue in the wider insolvency situation. Several power project entities and the transportation subsidiary have been taken over by resolution professionals, while road project subsidiaries are reported to be in arbitration or liquidation. In May 2026, the NCLT Hyderabad Bench admitted GVK Coal (Tokisud) Company Pvt Ltd, a subsidiary, into CIRP on a petition filed by IDBI Bank under Section 7 of the IBC. The default amount as of November 1, 2025, was ₹39.67 crore. Dhaval Jitendrakumar Mistry was appointed as the Interim Resolution Professional for GVK Coal (Tokisud). The subsidiary’s admission adds another court-supervised process to the group’s remaining portfolio.

Guarantees remain a major concern

Auditors drew attention to guarantees and commitments issued by the company for GVK Coal Developers (Singapore) Pte Ltd, an associate company. The stated guarantees totalled USD 2.19 billion, an amount described as substantially larger than the holding company’s balance sheet. Management has not made a provision for these guarantees, according to the supplied disclosures. The auditors have disclaimed an opinion, highlighting the uncertainty attached to the financial statements. Such contingent obligations are significant because they can influence potential resolution structures and the assessment of residual value. Their ultimate financial effect remains dependent on the underlying obligations and the outcome of relevant proceedings.

Claims exceed the visible residual base

The approved resolution framework reportedly sets liabilities against admitted claims of ₹15,944.89 crore. This figure highlights the scale of the creditor claims relative to the company’s residual operating position. A separate lender settlement with Phoenix ARC was dated June 30, 2025, involving admitted claims of ₹1,050.28 crore and the release of pledged hydro-plant shares. No subsequent update on that settlement was provided in the supplied information. The claims position is important because any approved resolution plan would need to define how liabilities are addressed and whether any value remains for existing equity. The company has indicated that near-term value depends on asset-wise sales after the rejection of the earlier plans.

What the next creditor decision means

A fresh CIRP round would provide another opportunity for potential applicants to submit a compliant proposal. Liquidation, if chosen, would move the company towards a process centred on the realisation and distribution of assets under the IBC framework. Neither route guarantees any recovery level for a particular stakeholder. For creditors, the key consideration is whether another resolution attempt could produce a better outcome than liquidation. For public shareholders, the central issue is whether any value survives after admitted claims, guarantees, asset outcomes and insolvency costs are considered. The CoC’s next decision will therefore be the immediate milestone for GVK Power & Infrastructure.

A holding company awaits its next outcome

GVK Power & Infrastructure’s situation reflects the breakdown of a holding-company model built on project-specific subsidiaries, borrowings and cross-guarantees. The company’s nil FY26 operating income, loss of control over key subsidiaries and unresolved resolution process have left its future dependent on creditor-led decisions. The CoC has not yet announced whether it will begin another CIRP round or pursue liquidation. Meanwhile, the separate proceedings involving group entities, including GVK Coal (Tokisud), remain relevant to the wider financial picture. Any further disclosure from the Resolution Professional, CoC or NCLT will be important in establishing the next formal step.