NCLT approves Rs 43-cr resolution plan of Amrutha Constructions for Galada Power and Telecommunication
The Hyderabad bench of the NCLT has approved the Rs 43-crore resolution plan submitted by Amrutha Constructions Private Limited for Galada Power and Telecommunication Ltd.
The resolution amount includes an upfront payment of Rs 38.43 crore, and a sum of Rs 3.7 crore for working capital. As per the resolution plan, financial creditors would receive Rs 29.32 crore against their admitted claims of Rs 2,100 crore, employees and workmen will get Rs 49 lakh against their admitted claims of Rs 1.22 crore and operational creditors get Rs 12 lakh against their claims of Rs 4.69 crore. An amount of Rs 5 crore has been provided for Capex and another Rs 3.7 crore as working capital. An amount of Rs 3.5 crore has been provided for CIRP Cost.
The Resolution Plan was approved with 100% voting by the committee of creditors.
Payments to all creditors will be made within 45 days of the approval of the resolution plan. Resolution Applicant has requested for a 120-day cure period with an applicable interest rate of 12% per annum compounded monthly, for any payment default from the due date for the payment proposed in the above resolution plan, prorated till the date of payment excluding any Force Majeure events.
Reconstitution of share capital
The existing paid-up Equity Share capital of Galada Power and Telecommunication consisting of 74,89,880 Equity shares of Rs. 10 each amounting to Rs. 7,48,98,800, will be reduced to 74,898 Equity shares of Rs. 10 each amounting to Rs. 7,48,980 and an amount of Rs 1.42 crore being 14,20,000 equity shares of Rs.10 each by Amrutha Constructions Pvt Ltd and an amount of Rs. 7 crore being 70,00,000 equity shares of Rs 10 each will be freshly infused by the management of the revived company on approval of the resolution plan.
In order to safeguard the interests of minority shareholders, any fractional share entitlement as a result of the capital reduction would be transferred to Galada Power Transmission Limited Trust which would be held in the name of P Venkateshwara Rao. The trust is empowered to sell the shares held in the company for a consideration it may deem appropriate and distribute the proceeds to its beneficiaries. No lock in period would be applicable for the share held by the trust.
Also See: NCLT approves Rs 140-cr resolution plan by Ace Infracity Developers for Three C Homes
