Evonith Holdings buys Topworth Urja for Rs 502 cr via insolvency process

The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved Rs 502-crore resolution plan submitted by Evonith Holdings Pvt. Ltd. for Topworth Urja & Metals Limited, marking a significant step in the corporate insolvency resolution process (CIRP) of the company. The order, pronounced on May 26, 2025, by a bench of Member (Judicial) Justice VG Bisht (Retd.) and Member (Technical) Sh. Prabhat Kumar, brings an end to the CIRP initiated by Bank of Baroda in 2018.

Key Highlights of the Resolution Plan Approval:

• Successful Resolution Applicant (SRA): Evonith Holdings Pvt. Ltd., a private limited company incorporated under the Singapore Companies Act, is the successful resolution applicant.
• CoC Approval: The resolution plan, dated May 29, 2023 (amended up to October 16, 2023), received unanimous approval from 100% of the Committee of Creditors (CoC) in their 14th meeting held on January 5, 2024.
• Total Outlay: The total outlay of the resolution plan is Rs 502.10 crores.
  • CIRP Costs: INR 54.38 crores (to be paid upfront within 30 days).
  • Workmen and Employees: Rs 1.18 crores (to be paid upfront within 30 days).
  • Operational Creditors (excluding workmen and employees): Rs 1.82 crores (to be paid upfront within 30 days).
  • Secured Financial Creditors: Rs 242.62 crores, comprising an upfront payment of Rs 42.62 crores and a balance payment of Rs 200 crores over 5 years via Non-Convertible Debentures (NCDs). An additional Rs 117.23 crores is allocated for interest on NCDs, Rs 23.87 crores towards Bank Guarantee, and Rs 61 crores for Industrial Promotion Subsidy.
  • Unsecured Financial Creditors: Nil payment proposed against an admitted claim of INR 6.35 crores.
• NCD Structure: The Rs 200 crore NCDs for secured financial creditors have varying interest rates (12% to 18.50% p.a.) and redemption percentages (10% to 37%) over five years.
• Dismissal of Challenges: An interlocutory application (IA No. 1799/2024) filed by MS Agrawal Foundries Private Limited challenging the plan’s approval was dismissed by the NCLT on February 6, 2025.
• Compliance and Feasibility: The Resolution Professional, Mr. Avil Menezes, confirmed that the plan complies with all provisions of the Insolvency and Bankruptcy Code, 2016, and its regulations, including Section 29A eligibility, and is feasible and viable. The average fair value of the corporate debtor’s assets was Rs 460.80 Crores, and the average liquidation value was Rs 341.99 Crores.
• Moratorium Cessation: The moratorium under Section 14 of the Code ceases to have effect from the date of the order.
• Binding Nature: The approved resolution plan is binding on Topworth Urja, its employees, members, creditors (including Central and State Governments, and local authorities), guarantors, and other stakeholders.
• Monitoring Committee: A Monitoring Committee will be constituted with representatives from approving financial creditors and the Resolution Applicant, along with an external expert, to supervise the plan’s implementation.

Background

Topworth Urja & Metals Limited, a public limited company incorporated in 1993, was admitted into CIRP on August 12, 2022, following an application by Bank of Baroda. The CIRP saw several extensions, with the final period ending on January 11, 2024. The CoC was constituted on December 31, 2022, and Mr. Avil Menezes was appointed as the Resolution Professional on April 10, 2023. The process involved multiple rounds of inviting expressions of interest and negotiations before the final approval of Evonith Holdings’ plan.

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