State-run Andhra Pradesh Power Finance Corporation has defaulted in debt servicing on bonds worth Rs 3,100 crore. Sister states AP and Telengana are at loggerheads over who should paying bond holders.
The erstwhile power finance company of the united state government was bifurcated into APPower Finance Corp. and Telengana State Power Finance Corp. Both are squabbling over distribution of assets and liabilities.
´Despite our continuous effort, the Corporation has not remitted the shortfall (in interest payment),´ said State Bank of Hyderabad, which was the debenture trustee for the bond, in a letter to investors.