NCLT approves Rs 67-crore resolution plan for Trident Sugars

The National Company Law Tribunal (NCLT), Hyderabad Bench-I, has approved the Rs 67 crore resolution plan submitted by Delta Sourcing for Trident Sugars Limited (Corporate Debtor). The plan had received unanimous approval with 100% voting share from the Committee of Creditors (CoC).

Approved Resolution Plan Details:

• Successful Resolution Applicant (SRA): Delta Sourcing, a proprietorship firm led by Mohammed Omer, specializing in scrap management and certified disposal services.
• Total Resolution Plan Amount: ₹66,95,63,740 (including CIRP costs).
• Additional Infusion: The SRA proposes to infuse an additional ₹6,50,00,000 towards Working Capital on a need-only basis.
• Total Claims Admitted by RP: ₹150 crore
• Percentage of Amount Provided to Claims Admitted: 42.36%.
• Haircut: 57.64%.
• Performance Security: The SRA has deposited a total of ₹7,00,00,000 as performance security, which will remain until the plan is fully implemented.
• Term of Plan Implementation: 12 months from the date of NCLT approval.

Distribution of Payments (as per SRA undertaking):

• CIRP Costs: ₹3,12,21,000/- (within 30 days of NCLT approval).
• Operational Creditors (Government dues): ₹2,81,50,863/- (within 30 days).
• Operational Creditors (Other than Workmen, Employees, Govt. dues): ₹1,20,00,000/- (within 60 days).
• Operational Creditors (Workmen and Employees): ₹3,46,00,000/- (or admitted claims, whichever is lower, within 60 days).
• Unsecured Financial Creditors: ₹5,00,000/- for related parties and ₹13,65,00,000/- for unrelated parties (within 60 days).
• Secured Financial Creditors: ₹42,50,00,000/- (₹30,00,00,000/- in two tranches within 30 days, remaining in equal installments over 12 months with 12% p.a. interest, payable quarterly).
• IBBI Fees: ₹15,91,875/-.

CIRP Commencement and Key Milestones: The Corporate Insolvency Resolution Process (CIRP) for Trident Sugars Limited commenced on July 9, 2024. A public announcement inviting claims was issued on July 13, 2024. The Committee of Creditors (CoC) was constituted on August 1, 2024, and later reconstituted on August 13, 2024, comprising:

• Prudential Ammana Sugars Limited (74.24% voting share)
• Delta Sourcing (25.19% voting share)
• Mr. G. V. Harisainath Reddy (0.57% voting share)

Mr. Manjeet Bucha was confirmed as the Resolution Professional during the first CoC meeting on August 6, 2024.

Valuation and Resolution Plan: Two Registered Valuers were appointed to assess the Corporate Debtor’s assets. The overall Fair Value of Trident Sugars Limited was determined to be ₹81,64,54,135/-, and the Liquidation Value was ₹57,91,71,893/-.

Expressions of Interest (EOIs) were invited on August 27, 2024, and nine prospective resolution applicants submitted EOIs. Subsequently, three resolution plans were received, with M/s. Delta Sourcing’s plan being unanimously approved by the CoC on December 21, 2024.

Compliance and Monitoring: The NCLT confirmed that the Resolution Plan complies with all provisions of the IBC and relevant CIRP Regulations (Sections 30(2), 31, and Regulations 37, 38, 38(1A), 39(4)). The SRA’s eligibility under Section 29A of the Code was also affirmed. A Monitoring Committee, consisting of the Resolution Professional, a representative of Financial Creditors, and a representative of the Resolution Applicant, will oversee the plan’s implementation.

With this approval, the moratorium under Section 14 of the Code ceases, and all crystallized and unclaimed liabilities of the Corporate Debtor as of the order date stand extinguished. The Registrar of Companies (RoC) Hyderabad will update the master data, and the IBBI will also be informed.

Also See: NCLT approves Asons Pharma’s Rs 83.40 cr resolution plan for Astral Steritech