NCLT approves Rs 42.11 cr resolution plan for Innovative Tyres and Tubes
The NCLT has approved the Rs 42.11 crore resolution plan of Ten On Ten Rubtech Private Limited for Innovative Tyres and Tubes. The Committee of Creditors (CoC) of Innovative Tyres and Tubes had earlier discussed the proposal of Ten On Ten Rubtech and in the 12th CoC meeting held on 31 December 2022, approved the resolution plan with 99.70% votes.
The resolution plan makes the following provisions:
- Rs 81 lakh will be paid towards CIRP costs within 30 days from the effective date.
- Rs 36.4 crore will be paid to secured financial creditors against their admitted claim of Rs 39.15 crore.
- Rs 3.42 crore will be paid on priority basis to workmen’s 24-month dues, CIRP cost, ESIC/PF dues and gratuity dues.
- Rs 2.61 crore will be paid to operational creditors against their admitted claims of Rs 90.36 crore.
The fair value of the assets of the corporate debtor was Rs 80.41 Crores whereas, the liquidation value is Rs 41.46 Crores. The successful resolution applicant has proposed payment of Rs 42.11 crores in the resolution plan.
The resolution applicant plans to fund the acquisition through:
- Own funds by way of Rs 4.90 crores overdraft from IDBI Bank, Rs.10 crores Fixed Deposit with IDBI Bank, Rs.7.37 crores Fixed Deposit with Deutsche Bank; and
- An unsecured loan from director Munish Chawla by way of fixed deposit & overdraft from IDBI Bank amounting to Rs.14.59 crores & Rs.7.50 crores, respectively.
The resolution applicant Ten on Ten Rubtech Private Limited is a private limited company incorporated in the year 2016 and is engaged in the business of import & processing of rubber compounds in India.
Corporate insolvency resolution process against Innovative Tyres and Tubes was initiated by operational creditor BBM Impex Ltd after the former failed to clear a due of Rs 3.06 crore. The NCLT allowed the insolvency application in March 2022.
About Innovative Tyres and Tubes
Innovative Tyres and Tubes Limited (ITTL) is part of the Innovative Group, a manufacturers and exporters of Bias Tyres in India. It has an experience of 20 years in manufacturing. ITTL offers a wide range of products in the truck, bus, agricultural & OTR and motorcycle & three-wheeler segments. The company has two manufacturing units– Innovative tyre plant and innovative tube plant — which are located very close to each other in Panchmahal, Gujarat.
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