Ex-promoter Sudarshan Das Mundhra successfully bids for Simplex Projects

Former promoter Sudarshan Das Mundhra has been officially declared the successful resolution applicant for Simplex Projects Limited (corporate debtor) with a Rs 235.28 crore resolution plan. The resolution plan was approved by the Kolkata bench of the NCLT on 6th August 2024.

Since the Corporate Debtor is a ‘medium’ enterprise under the Micro, Small, and Medium Enterprises Development Act, 2006, Sudarsshhan Das Mundhra, who was the director, suspended board and promoter of Simplex Projects Limited, was allowed to bid for the company.

The company’s Committee of Creditors (CoC) overwhelmingly approved the resolution plan with a 99.51% voting share.

Key details of the resolution plan:

• Total admitted debt: Rs 2108.49 crore
• Plan value: Rs 235.28 crore
• Allocation of funds:
  • CIRP cost: Rs 3.93 crore
  • Secured financial creditors: Rs 227.11 crore (including a minimum guaranteed amount of Rs 28.50 crore) against their admitted claims of Rs 2,054 crore.
  • Unsecured financial creditors: Rs 0.06 crore
  • Operational creditors: Rs 0.36 crore
  • Workmen and employees: Rs 1.32 crore
  • Contingent liabilities: Rs 0.50 crore
  • Working capital: Rs 2.00 crore
• Fair value of the company: Rs 51.98 crore
• Liquidation value of the company: Rs 35.54 crore

Note: Secured financial creditors claimed a total of Rs 2,054 crore, but received Rs 225.61 crore under the plan. Additionally, Rs 1.50 crore was allocated to secured financial creditors with exclusive charge on certain assets.

Treatment of home buyers:

The company had entered into an agreement with Shree RSH Projects for a real estate development, which is nearing completion. Mundhra plans to collaborate with the developer to finish the project within a year of the plan’s implementation.

Treatment of arbitral award:

Mundhra has proposed a Rs 28.50 crore payment on account of the proposed sharing of arbitration awards, irrespective of the outcome of any appeals.

About Simplex Projects Limited

Incorporated in the year 1990 as a Public Limited Company. The Registered Office at Calcutta is controlling Project Sites all over India. In a short span of time of its working Simplex Projects Ltd has emerged as a renowned civil engineering and construction company. It got Listed in the Bombay and National Stock Exchange at Rs. 180 and the stock prices reached its peak at Rs. 480.

The company was dragged to insolvency court by State Bank of India for defaulting on a payment of Rs 228.52 crore.

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