Sagar Cements’ Rs 767-crore bid for Andhra Cements approved by NCLT
The Amravati bench of the NCLT has approved of the Rs 767-crore resolution plan submitted by Sagar Cements Limited for Andhra Cements, the erstwhile Jaypee Group company said in an exchange filing.
As per the approved resolution plan, secured financial creditors would receive Rs 726 crore against their admitted claims of Rs 1,316 crore, operational creditors get Rs 9.33 crore against their admitted claims of Rs 156 crore. Employees and workmen get Rs 8.27 crore, the same amount they had claimed.
All the payment to be made within 30 days of the order of the NCLT.
The NCLT found the resolution plan meeting all the requirements of the IBC 2016 and more importantly Section 30 (2) of the IBC Code and Regulation 38 (1A) and applicable CIRP Regulations. It does not contravene any of the provisions of law. It caters to the interest of all the stakeholders.
The committee of creditors of Andhra Cements had earlier approved the resolution plan by Sagar Cements Limited with 100% voting.
Resolution Plan
| Category of claimants | Admitted claims (Rs cr) | Provided for in the plan (Rs cr) |
| Secured financial creditors | 1,316 | 726 |
| Operational creditors | 156 | 9.33 |
| Employees and workmen | 8.27 | 8.27 |
| CIRP Cost | — | 18.90 |
| Legal corpus | — | 1 |
| Allotted Interim Management Costs | — | 3.89 |
Andhra Cements, which owed around Rs 1,600 crore to different creditors, was dragged to insolvency court by Pridhvi Asset Reconstruction and Securitisation Company Limited for defaulting on a payment of over Rs 800 crore.
The Jaypee Group company is facing financial distress for a long time and posting losses for over a decade, and its revenue has come down from Rs 515 crore on 2007-08 to Nil in 2021-22. At the end of 2021-22, its consolidated losses have reached Rs 236 crore.
Andhra Cements Limited, incorporated on 9th day of December 1936 under the Indian Companies Act 1913, and had since then experienced several changes till date with respect to the promoters and management.
Earlier, the Management of the Company transferred from the then promoters, Bennett Coleman Co. Ltd, to Duncan Group of GP Goenka who had acquired the Company in the year 1994 from BIFR. Later due to financial crises the production activity of Cement was stopped and the both the plants shut-down during the period from 2010-12 and all the production and all other operations were closed.
In 2012, the present promoters — Jaypee Development Corporation Limited (Jaypee Group) — acquired about 60% shareholding of the Company and took over the Management control with effect from February 2012.
Also Read: Andhra Cements CoC decides to put two resolution plans to e-voting
