NCLT approves Rishikunj Vincom’s resolution plan for Narayani Steels Limited
The Kolkata bench of National Company Law Tribunal (NCLT) has approved the resolution plan submitted by Rishikunj Vincom Private Limited for corporate debtor Narayani Steels Limited. The BSE listed Narayani Steels informed the exchanges recently.
This after the committee of creditors (CoC) of Narayani Steels Limited had approved the resolution plan submitted by Rishikunj Vincom Private Limited with 100% majority/voting share in accordance with the provisions of Section 30(4) of the Insolvency and Bankruptcy Code.
As per the terms and conditions of the resolution plan document, the resolution applicant (RA) was requested to bring in the funds as per the following timelines:
| Particulars | Deadline | Amount (Rs cr) |
| Upfront payment within 30 days of NCLT order | 10 Feb 2022 | 13.91 |
| 1st Tranche within 2 months of NCLT order | 12 March 2022 | 6.90 |
| 2nd Tranche within 3 months of NCLT order | 31 March 2022 | 6.90 |
| Total | 27.72 |
It has been clarified that outstanding CIRP expenses as on the date of NCLT order amounts to Rs 10.00 lakhs plus applicable taxes (remuneration payable to Resolution Professional till the date of NCLT Order).
The approved CIRP costs was Rs. 10.00 lakhs and the same shall be paid in full and in priority to any other payment as per the provisions of Section 30(2)(a) of the code.
The funds brought in by resolution applicant will be utilized for settling the dues of various stakeholders as per the approved Resolution Plan document which is detailed hereunder:
| Particulars | On or before 10 Feb 2022 | On or before 12 March 2022 | On or before 31 March 2022 | Total |
| CIRP Expenses | Rs 10 lakh | Rs 10 lakh | ||
| Union Bank of India | Rs 13 crore | Rs 6.5 crore | Rs 6.5 crore | Rs 26 crore |
| Tata Capital Financial services | Rs 15.80 lakh | Rs 7.90 lakh | Rs 7.90 lakh | Rs 31.60 lakh |
| ICICI Bank Limited | Rs 14.40 lakh | Rs 7.20 Lakh | Rs 7.20 Lakh | Rs 28.80 Lakh |
| Axis Bank Limited | Rs 7.10 lakh | Rs 3.55 lakh | Rs 3.55 lakh | Rs 14.20 lakh |
| Yes Bank Limited | Rs 3.20 lakh | Rs 1.60 lakh | Rs 1.60 lakh | Rs 6.40 lakh |
| Indian Overseas Bank | Rs 20.25 lakh | Rs 10.12 lakh | Rs 10.12 lakh | Rs 40.50 lakh |
| Canara Bank | Rs 20.25 lakh | Rs 10.125 lakh | Rs 10,125 lakh | Rs 40.50 lakh |
| Total | Rs 13.19 crore | Rs 6.9 crore | Rs 6.9 crore | Rs 27.72 crore |
As per the terms of the approved Resolution Plan, a monitoring committee has been constituted which will comprise of one representative from the Financial Creditor, resolution professional of Narayani Steels and one representative from the resolution applicant.
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