NCLT approves Ramkrishna Forgings Rs 125-cr resolution plan for JMT Auto
The New Delhi bench of NCLT has approved the Rs 125-crore resolution plan submitted by Ramkrishna Forgings Limited for the corporate insolvency resolution process (CIRP) JMT Auto.
As per the resolution plan, financial creditors get Rs 111 crore against their total claims of Rs 168 crore, while operational creditors get Rs 13 crore against their total claims of Rs 52 crore. An additional Rs 96.37 lakh has been provided for other debts that were not part of the admitted claims.
The fair market value of the JMT Auto was arrived at Rs 144.19 crores and the liquidation value of was arrived at Rs.105.03 crores. The total amount provided under the approved resolution plan (Rs 125 Crore) is 66% of the total amount claimed by various stakeholders and is 119% of the liquidation value of the Corporate Debtor.
The Resolution Plan submitted by Ramkrishna Forgings Limited was earlier approved by the Committee of Creditors with 84.61% votes in its favour. SBI was the sole dissenting creditor.
Apart from Ramkrishna Forgings, RKG Fund I had also submitted its resolution plan. However, CoC rejected the resolution plan of RKG Fund I by 100% vote share.
About JMT Auto
JMT Auto, an auto component manufacturer from Jamshedpur, Jharkhand, went into corporate insolvency resolution process (CIRP) in February 2022 after an Axis Bank insolvency application filed against JMT Auto was admitted by the NCLT for defaulting on a payment of Rs 60 crore.
The company owed Rs 220 crore to its creditors, out of which Rs 168 crore is owed to financial creditors. Axis Bank has the largest claim of Rs 77 crore, followed by IDBI Bank (Rs 58 crore) and SBI (Rs 26 crore).
JMT Auto is one of the largest auto component manufacturers in the Eastern region of the country and has expertise in the auto sector with proven capabilities in heat treatment & gear manufacturing besides a variety of components for Oil and Gas industry.
Established in 1987, the core competence of the company is high precision Gears and Shafts.
About Ramkrishna Forgings
Ramakrishna Forgings Limited is a Kolkata-based manufacturer of auto components. It supplies OEMs like TATA Motors, Ashok Leyland, VE Commercial and Daimler in India and Volvo, Mack Trucks, Iveco, Ford in the overseas markets. It also supplies globally to Tier 1 axle manufacturers like Dana, Sisamex, Meritor and American Axles. (Check share price of Ramkrishna Forgings)
Ramkrishna Forgings posted total revenue of Rs 3,004 crore and profit of Rs 235 crore in FY23.
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