Mercury Terra Firma acquires Shree Rajeshwaranand Paper Mills for Rs 48 crore
The Ahmedabad bench of the NCLT has approved the Rs 48.17 crore resolution plan by Mercury Terra Firma for corporate debtor Shree Rajeshwaranand Paper Mills, an Ahmedabad-based BSE-listed manufacturer of paper and paper products. The resolution plan was earlier approved by the Committee of Creditors (CoC) with 97.36% vote share. The liquidation value of the company was arrived at Rs 33.16 crore, while the fair value arrived at Rs 45.85 crore.
As per the resolution plan, Mercury Terra Firma promises to pay Rs 39.35 crore to secured financial creditors against their admitted claims of Rs 72 crore. The unsecured creditors get Rs 50 lakh against their admitted claims of Rs 4.68 crore. Operational creditors (including statutory and employees dues) have been provided with Rs 67 lakh against their admitted claims of around Rs 24 crore.
The resolution plan has also set aside a sum of Rs 7 crore for working capital needs, while Rs 65 lakh has been set aside for CIRP cost.
As per the source of funds, Rs 10 crore would be infused through subscription of equity shares, while Rs 31 crore would be raised through unsecured loans from banks, associates friends and relatives.
As per the payment schedule, the first Rs 11 crore would be paid within a month of the approval of the resolution plan, another Rs 10 crore within two months and the rest of the 20 crore within three months.
It must be noted that Corporate Insolvency Resolution Process (CIRP) was initiated, on a petition filed by Bank of India against Shree Rajeshwaranand Paper Mills Limited in December 2022. Vineeta Maheshwari was appointed as the Interim Resolution Professional of the Company. Further, Committee of Creditors in February 2023 resolved to appoint Sunit Shah as the Resolution Professional of the company to carry out the functions entrusted by the provisions of the Insolvency and Bankruptcy Code, 2016.
Mercury Terra Firma is a Bharuch, Gujarat-based civil engineering and construction company.
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