Rs 501-crore resolution plan for Indu Projects gets NCLT approval
The Rs 501-crore resolution plan submitted by B Subba Reddy in consortium with C Venkateswara Reddy for Indu Projects Limited has been approved by the Hyderabad branch of the NCLT.
The resolution plan for Indu Projects has provided Rs 394 crore to financial creditors who had admitted claims of Rs 3,890 crore. The plan also provides for Rs 6 crore to operational creditors, who had admitted claims of Rs 183 crore. A sum of Rs 100 crore will be provided as working capital for Indu Projects, while Rs 1 crore has been provided for as CIRP cost. All the payments will be made within 90 days from the approval of the resolution plan.
The resolution plan for Indu Projects was earlier approved by the CoC by 100% vote share.
Indu Projects, a Hyderabad-based EPC contractor with interest in energy and real estate sector, was dragged to insolvency court by Bank of India for defaulting on dues amounting to Rs 3,000 crore from a consortium of banks. Bank of India was also part of the consortium.
Two resolution plans were received by the resolution professional — Anup Kumar Singh — and the same were put for voting in the 11th CoC meeting conducted on 24th January, 2020. In the said meeting, the plan proposed by Shyamraju & Company (India) Private Limited was accepted by the CoC and the said Resolution Applicant was declared as the H1 Bidder.
However, the said plan could not muster the minimum 66% of the vote of the CoC and, hence, the same was rejected.
After that the resolution professional filed an application under Section 33 of the IBC for commencement of liquidation proceedings and due to Covid-19, the same could not be taken up by this Tribunal.
Meanwhile, the RP received an Expression of Interest (EoI) from Earthin Projects Limited, which expressed an intention to participate in the resolution process in relation to the CD. An extension was sought for the CIRP. Thereafter, the applicant published fresh Form G and the applicant received three Resolution Plans.
The plan submitted by Earthin Projects Limited in consortium with K Ramachandra Rao Transmission & Projects Pvt. Ltd was approved by the CoC with 100% voting and the same was approved by this Tribunal. However, due to the failure of the said resolution applicant to fulfil the conditions under the resolution plan, a fresh process of CIRP was conducted for Indu Projects, during which eight EoIs were received and the plan submitted by B Subba Reddy in consortium with C Venkateswara Reddy was approved after due deliberations by 100% voting.
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