NCLT approves resolution plan for Bhatia Coke and Energy
The Chennai bench of the National Company Law Tribunal (NCLT) has given a go ahead to the joint bid by Earth Elements Development Company Ltd and Mahavir Coal Washeries for Tamil Nadu-based Bhatia Coke and Energy.
The two bidders have offered to pay Rs 190 crore to Bhatia Coke and Energy creditors, who had together put in claims of Rs 1,462 crore.
As per the resolution plan of the successful resolution applicant, Rs 189 crore would be paid to the financial creditors who had claimed Rs 1,459 crore. Rs 50 lakh would be paid to operational creditors, who had submitted claims of Rs 3 crore.
Since the resolution professional did not receive any claims for workers, no provisions were made for them in the resolution plan.
The resolution plan submitted by the consortium of Earth Elements Development Company Ltd and Mahavir Coal Washeries was earlier approved by the Committee of Creditors (CoC) by 100% vote share.
State Bank of India with 32% vote share had the largest claims, followed by Oriental Bank of Commerce (20% vote share), and IDBI bank, Union Bank of India and Bank of Baroda with 12% vote share each.
The CIRP of Bhatia Coke and Energy was initiated in May 2019 on the application filed by State Bank of India for the former’s failure to repay Rs 125 crore.
In September 2020, two resolution applicants – RARE Asset Reconstruction Company Ltd and the consortium of Earth Elements Development Company Ltd and Mahavir Coal Washeries – had submitted their resolution plans.
However, the resolution plan submitted by RARE Asset Reconstruction Company Ltd was found non-compliant and hence was not considered for voting at the meeting of CoC.
Bhatia Coke and Energy was incorporated in 2008, and was engaged in trading of coal, Coke over manufacturing and coal washery.
It is the sister concerns of BSE-Listed Hemang Resources Ltd and was owned by Surinder Singh Bhatia and family.
