NCLT approves Rs 74.81-crore resolution plan for Ujaas Energy
The Rs 74.81 crore resolution plan submitted by consortium of SVA Family Welfare Trust and M&B Switchgears for Ujaas Energy Ltd has been approved by the National Company Law Tribunal.
As per the resolution plan, secured financial creditors will receive Rs 68.81 crore against their total admitted claims of Rs 144 crore. Unsecured financial creditors, who voted in favour of the resolution plan, will receive 50 lakh equity shares of the company priced at Re 1. Operational creditors will receive Rs 20.5 lakh against their admitted claims of Rs 92.19 crore. Out of the total sum provided towards the resolution, Rs 5.77 crore will be towards working capital requirement of the company.
The Corporate Insolvency Resolution Process (CIRP) was initiated against Ujaas Energy Limited in September 2019. Ujaas Energy owed Rs 150 crore to its creditors.
The resolution plan proposes to restructure the share capital of the Ujaas Energy in the form of a demerger of the corporate debtor. The business of the corporate debtor is to be divided into three segments – (a) Sale of Solar power plant, solar power generation, operation & maintenance, manufacturing of electrical vehicles; (b) transformer business; and (c) power trading and advisory.
The consortium of SVA Family Welfare Trust and M&B Switchgears envisages the demerger of the transformer business (demerged undertaking 1) and power trading and advisory business (demerged undertaking 2) of the corporate debtor into resulting company 1 & resulting company 2, respectively in such a manner that all assets & liabilities, rights and obligations relating to the demerged undertaking 1 & 2 will be vested with the resulting Company 1 & 2 respectively. The Resulting Company 1 & 2 will be new companies freshly incorporated to meet the requirements of this resolution plan.
It is to be mentioned here that the Indore Bench of the NCLT in its 6 January 2023 order had refused to approved the Rs 74.81 crore resolution plan submitted by SVA Family Welfare Trust on the ground that the plan contained a provision for extinguishment of personal guarantee of the personal guarantors given in favour of the Bank of Baroda.
However, the NCLT overturned the order after noting that all financial creditors had assented for relinquishment of such security except Bank of Baroda which had only 5.83% vote share.
Also See: Ujaas Energy resolution back on track after NCLAT reverses NCLT order
