Creditors approve resolution plan of GSEC Ltd for Diamond Power Infrastructure

The Committee of Creditors of Diamond Power Infrastructure Limited has approved the Resolution Plan submitted by GSEC Limited in consortium with Rakesh Shah with 89.46% voting majority.

The Resolution Professional will file an application seeking for approval of the Resolution Plan as approved by the COC before the National Company Law Tribunal, Ahmedabad Bench.

The insolvency petition against Diamond Power Infrastructure Ltd, the Vadodara-based manufacturer of power transmission equipment and turnkey services provider, was moved by public sector lender Bank of India (BoI) for a default on payment of Rs 485 crore due to the bank.

The Ahmedabad bench of the NCLT had admitted the insolvency petition on 24 August 2018. The CoC had appointed Prashant Jain as the insolvency resolution professional.

GSEC Limited, which has emerged as the successful resolution applicant, was once owned by Gujarat government. It was earlier known as the Gujarat State Export Corporation Limited, and was acquired by Rakesh Ramanlal Shah in 2004 under the disinvestment proposal from the Government of Gujarat.

The Ahmedabad-headquartered company is primarily involved in handling cargo operations both for International cargo (Ahmedabad and Visakhapatnam) and Domestic cargo (Raipur and Indore).

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