NCLT approves resolution plan submitted by Kirloskar Ferrous Industries for Oliver Engineering
Kirloskar Ferrous Industries Limited (KFIL), one of the leading castings and pig iron manufacturers in India, has won the bid for Oliver Engineering Private Ltd after the New Delhi bench of the National Company Law Tribunal (NCLT) approved the Rs 110.55 crore resolution plan submitted by it.
The order of NCLT for approval of the resolution plan was passed on 12 September 2023. The resolution plan by Kirloskar Ferrous Industries was approved by the CoC in its 17th meeting dated 2 May2023 with 100% voting share.
Commenting on this development, R V Gumaste, Managing Director, KFIL, said: “Oliver Engineering is a right fit to our current product portfolio within the casting sector. We are confident on implementing the resolution plan submitted within the time frame. This acquisition enables us to diversify geographically and meet the increasing demands of our current customers from Northern India. Since the plant was not in operation, we believe it will take around 4 to 5 months to make it operational. We anticipate that this capacity expansion will create valuable synergies for our casting business.”
Oliver is engaged in the business of ferrous casting and machining with its manufacturing facility located in Village Sandharsi, Tehsil Rajpura, State Punjab. The present capacity of Oliver is 28,000 MT per annum.
The resolution Plan
The size of the resolution plan submitted by Kirloskar Ferrous Industries is Rs 110.55 crore. As per the resolution plan, secured financial creditors would receive Rs 106.40 crore out of their total admitted claims of Rs 763 crore. The rest of the Rs 4.15 crore has been provided for the claims of operational creditors, who had submitted claims of Rs 44 crore.
The insolvency proceedings against Oliver Engineering had been initiated by Punjab National Bank after the former defaulted on a payment of Rs 2.65 crore.
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