NCLT approves Rs 176-crore resolution plan for Indian Sugar Manufacturing Company Ltd
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The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved the Rs 176-crore resolution plan submitted by the Consortium of Shri Dutt India Private Limited and Shri Dutt Biofuels Private Limited for the corporate insolvency resolution plan of Indian Sugar Manufacturing Company Limited.
The resolution plan was earlier approved by the Committee of Creditors (CoC) with 100% voting.
As per the resolution plan, secured financial creditors of Indian Sugar Manufacturing Company Limited would receive Rs 105.6 crore from the successful resolution applicant against their total claims of Rs 276 crore. Unsecured financial creditors would receive Rs 36 crore against their total claims of 226 crore. Operational creditors (including statutory dues) would receive Rs 1.34 crore against their total claims of over Rs 21 crore. A provision of Rs 20 crore has been made for capital infusion and Rs 10 crore for working capital needs.
Payments to financial and operational creditors will have to be made within three months of the NCLT order of approval of the resolution plan, while capex and working capital fund infusion has to be made within two months. The CIRP cost is assumed to be not more than Rs. 2.5 crore.
Indian Sugar Manufacturing Company Limited was dragged to the insolvency court by financial creditor Saisidha Sugar Equipments and Engineering Company Private Limited for defaulting on a payment of Rs 71.4 crore.
The resolution plan stipulates that the proceeds arising out the recoveries made from PUFE transactions will be distributed to the CoC members in accordance with their voting share.
Indian Sugar Manufacturing Company Limited (ISMCL) was incorporated on 07th January 2001 and had its registered office at Vitthal Auto Lines NH 9, AP, Tembhurni TQ. Mhada, Solapur, Maharashtra – 413210. ISMCL is a Sugar and allied manufacturing and also is into manufacturing of Rectified Spirits and generation of power.
The company has a Sugarcane Crushing Capacity of 4800 TCD, a Distillery Plant Capacity of 60 KLPD and a Cogeneration Capacity of 20MW.
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