NCLT rejects Ocean Cap Market bid for ARSS Infrastructure Projects
The Cuttack bench of the National Company Law Tribunal on 18 April 2023 rejected the resolution application filed by the Ocean Capital Market Limited (OCML) for Bhubaneswar-based ARSS Infrastructure Projects Ltd.
The Committee of Creditors of ARSS Infrastructure Projects Ltd approved the resolution plan of the Ocean Capital market Limited on 6th January 2023.
ARSS Infrastructure Projects Ltd in an exchange filing on 18 April informed: “Please note that this disclosure is being made pursuant to the oral pronouncement of order by the Hon’ble National Company Law Tribunal. However, the written order is awaited for further clarity.”
The insolvency application against the company was filed by State Bank of India in November 2021 for defaulting on a payment of Rs 2,273 crore. ARSS Infra owes Rs 3,850 crore to different financial creditors. Of the total admitted claims, dues to SBI is around Rs 2,400 crore. SBI has the largest voting share in the CoC at 62.29% followed by PNB (17.2%) with total claims of Rs 662 crore and Edelweiss Asset Reconstruction Company (10.90%) with admitted claims of Rs 420 crore.
As many as eight companies, including Asset Reconstruction Company (India) Limited, PNC Infratech and Kundan Care Products Ltd had shown interest in acquiring the company through the Corporate Insolvency Resolution Process. Successful resolution applicant – Ocean Capital Market – is a Rourkela-based financial intermediary company.
ARSS Infrastructure Projects is an engineering and construction company which carries out civil and infrastructure projects, Railways, Highways, flyovers, Irrigation works etc.
The turnover of the Company in 2021-22 was Rs 288.81crores as compared to ` Rs 248.45 crores in the previous financial year. The company posted a loss of Loss before tax of Rs 108.34 crores as compared to a loss of Rs 50.61 crores for the previous financial year.
The company is promoted by Subhash Agarwal and his family, but the promoter/promoter family holds a very small percentage shareholding in the company with public holding over 98% of the company.
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