NCLT approves Rs 256-crore resolution plan for Action Ispat and Power
The New Delhi bench of the NCLT has approved the Rs 256-crore resolution plan of Ocean Capital Market Ltd for Action Ispat and Power Private Limited. The total amount provided in the resolution plan is just 9.3% of the creditors admitted claims of Rs 2,744 crore.
As per the resolution plan, secured financial creditors will receive Rs 251 crore against their total admitted claims of Rs 2,456 crore, while unsecured creditors get Rs 30 lakh against their admitted claims of Rs 198 crore. Operational creditors receive Rs 4.7 crore against their admitted claims of Rs 90 crore.
The resolution plan was earlier approved by the committee of creditors by 80.50% vote share.
Infusion and Source of Funds
Ocean Capital Market Ltd proposes to infuse funds for implementing the Resolution Plan in the following manner:
- Rs 251.30 crore upfront amount to be paid by OCML as full and final settlement of debt of Secured Financial Creditors within 30 days of effective date.
- Rs 5 crore as Upfront Equity/unsecured loan towards payment of other creditors.
- In addition to the above amount of Rs 256.00 Crores committed towards Resolution Plan for Action Ispat and Power, the Resolution Applicant will also infuse Rs 100 crore towards working capital infusion and a sum of Rs 223 crore towards capital expenditure for repair and refurbishment of the CD.
The insolvency proceedings against Action Ispat and Power were initiated by State Bank of India in March 2022 after the company defaulted on a payment of Rs 723 crore.
Ocean Capital Market Ltd is a Rourkela-based financial institution.
Also See: NCLT approves Zaveri & Co’s Rs 135-crore resolution plan for Gujarat Hydrocarbons and Power SEZ
