NCLT approves Rs 1,600 crore Deccan Value Investors bid for Metalyst Forgings

The Mumbai bench of the NCLT has approved the Rs 1,600 crore resolution plan submitted by submitted by a consortium of Deccan Value Investors LP and DVI PE (Mauritius) Ltd for Metalyst Forgings Limited. Earlier, the CoC approved the resolution plan with a majority vote on 87.57%.

As per the resolution plan submitted by Deccan Value Investors LP and DVI PE (Mauritius) Ltd, the creditors of Metalyst Forgings Limited will receive a sum of Rs 1,000 crore, while Rs 600 crore would be infused by the successful resolution applicant for working capital and capex needs.

The company owed Rs 3,836 crore to secured financial creditors and Rs 70 crore to operational creditors.

The resolution plan provides that CIRP costs were paid from the cash flows of Metalyst Forgings. However, if any CIRP costs are payable on the NCLT approval date, in accordance with the Code, the same shall be paid in priority over payments to any other creditors within 30 days from the NCLT approval date.

The CIRP against Metalyst was initiated against on 15 December 2017 by State bank of India for defaulting on a payment of Rs 330 crore.

The resolution professional invited Expression of Interest (EOI) from potential resolution applicants vide advertisement dated 22 January 2018. Out of seven prospective resolution applicants, only three came forward with financial bids namely Liberty House Group, Deccan Value Investors and Bharat Forge Limited.

Thereafter, in terms of Regulation 27 of CIRP Regulations, the Applicant appointed two registered valuers, namely TR Chadha &Co LLP and Duff &Phelps India Private Limited to determine the fair value and liquidation value. Deccan Value Investors was declared as the H1 bidder. In the interim, an application for extension of CIRP period by 90 days was filed by the Applicant, the said extension was granted by this Tribunal vide order dated 5 June 2018. Thereafter, various discussions ensued amongst the CoC and the Resolution Applicant from the 7th CoC meeting dated 24.05.2018 till 12th CoC meeting dated 08.08.2018. Pursuant to the aforesaid discussions, the Resolution Applicant submitted two addendums to the Plan vide order dated 20 August 2018 and 23 August 2018.

The Applicant thereafter conducted the voting on the final resolution plan submitted by the consortium on 24 August 2018.

Also See: NCLT approves Sapphire Media’s Rs 261-cr bid for Reliance Broadcast Network