NCLT admits application for pre-packaged insolvency process of Sudal Industries
The NCLT has admitted the application of Sudal Industries, a registered MSME engaged in the business of manufacture of Aluminium Extrusions and Aluminium Base Alloys, to initiate pre-packaged Insolvency Resolution Process (PPIRP).
The company in an exchange listing informed that the petition filed before the National Company Law Tribunal, Mumbai bench for initiation of Pre-Packaged Insolvency Resolution Process under Section 54(C) of the Insolvency and Bankruptcy Code, 2016, has been admitted vide its order dated 20-04-2023. Prashant Jain, has been appointed as the Resolution Professional to conduct pre-packed insolvency process.
Under the Pre-packaged Insolvency Resolution Process, a corporate debtor can initiate a pre-packed resolution process after getting approval from 66% of its financial creditors by value of outstanding loan. The pre-packaged process is completed within a time of 120 days.
Sudal Industries owes Rs 132 crore to its financial creditor as on 30 June 2022.
List of Creditors
| Creditors | Amount claimed (Rs crore) | % of total claim |
| Canara Bank | 103.44 | 78.28 |
| Jaldhara Properties & Trading Pvt. Ltd | 13.84 | 10.47 |
| Gilbert Investment Pvt Ltd | 8.25 | 6.24% |
| Effervescent Commercial Pvt. Ltd | 1.77 | 1.34 |
| Aarkey Tieup Pvt. Ltd | 0.89 | 0.67 |
| Kothsons Finance & Consultancy Pvt. Ltd. | 0.89 | 0.67 |
| Cosmos Tradelink Pvt. Ltd. | 0.89 | 0.67 |
| Nicholson Vanijya Pvt. Ltd. | 0.89 | 0.67 |
| Surya Spices Vyapar Pvt. Ltd | 0.84 | 0.64 |
| GMB Finvest Pvt. Ltd. | 0.46 | 0.35 |
| Total | 1321 | 100 |
The debt due to Operational Creditors, un-related and related, as on that date is Rs. 8.22 crore and Rs. 74 lakh respectively.
Canara Bank holding 78.09% vote share has approved the decision of the directors to file pre-packaged application as contemplated under Section 54A (3) of the Code after considering the formalities completed by the Corporate Debtor including submission of Base resolution Plan. Jaldhara Properties & Trading Private Limited holding 10.56% vote and other 2 financial creditors holding together 6.94% vote attended the meeting but abstained from the voting on the plan. Five financial creditors holding 3.74% vote attended the meeting but voted against and the remaining financial creditor holding 0.67% vote neither attended the meeting nor participated in the voting.
Details of Base Resolution Plan
Amount envisaged under the resolution plan is Rs. 33 crore, out of which Rs. 30 crore will be infused by an investor within 15 days of approval of the resolution plan and Rs. 1 crore will be paid against allotment of 10,00,000 equity shares of Rs. 10 each.
The aforesaid amount as envisaged under the Resolution Plan shall be payable in the following manner:
| Particulars of the claim | Claim amount (Rs1 cr) | Settlement amount (Rs cr) |
| Secured Financial Creditor | 102 | 32.93 |
| Unsecured Finnacial Creditors | 26.2 | 0.07 |
| Operational Creditors | 10.32 | Payment asgoing concern |
| Grand total | 33 |
Also Read: Important sections of Bill on pre-packaged insolvency resolution tabled in parliament
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