Rakesh Shah of GSEC buys out Ushdev Engitech for Rs 95 crore
The National Company Law Tribunal (NCLT), Mumbai Bench, has approved the resolution plan submitted by Rakesh Ramanlal Shah for Ushdev Engitech Limited, a corporate debtor undergoing the Corporate Insolvency Resolution Process (CIRP). The successful plan proposes a total resolution amount of ₹94.63 crore, plus the payment of CIRP costs at actuals, to take over and revive the renewable energy company.
Distribution of the Resolution Amount
The following table details the treatment of various stakeholders under the approved resolution plan:
| Sr. No. | Stakeholder Category | Admitted Claim (₹) | Amount Proposed under Plan (₹) | Key Terms of Payment & Treatment |
| 1. | CIRP Cost | At actuals | At actuals | To be paid in full, in priority, from the upfront cash within 30 days of NCLT approval (N+30). |
| 2. | Secured Financial Creditors | 0 | 0 | Nil payment. |
| 3. | Unsecured Financial Creditors | 67,98,65,048 | 88,08,07,079 (in cash) + 1,00,00,000 (share buyback) | The payment includes the basic admitted debt, interest, and a mandatory obligation for creditors to sell 5% equity (2,50,000 shares) back to the Resolution Applicant at a guaranteed value of ₹1 Crore. |
| 4. | Operational Creditors | |||
| a. | Employees & Workmen | 0 | 10,00,000 (Contingent Fund) | A contingent fund is provisioned. Any provident fund (PF) or ESIC claims will be paid at actuals. |
| b. | Other than Govt. | 40,214 | 40,214 | To be paid in full. |
| c. | Government Dues | 3,83,57,386 | 3,83,57,386 | To be paid in full. |
| 5. | Preferential Equity Shareholders | 1,61,56,863 (Face Value) | 1,61,56,863 | A payment of ₹0.25 per share. All existing equity and preference shares will be extinguished. |
| 6. | Contingent Fund for Capex | – | 10,00,00,000 | An additional ₹10 Crores to be infused by the Resolution Applicant for capital expenditure as needed. |
| TOTAL RESOLUTION AMOUNT | 71,82,62,648 (Admitted Debt) | 94,63,61,542 (Plus CIRP Cost) | The total payout, including the capex fund, amounts to ₹104.63 Crores. |
Key Features of the Resolution Plan
- Successful Resolution Applicant: Rakesh Ramanlal Shah, Chairman & Managing Director of GSEC Limited, with a reported net worth of over ₹536 Crores.
- Source of Funds: The upfront cash will be infused through a mix of equity capital (₹5 Crores) and unsecured loans.
- Management & Supervision: A Monitoring Committee comprising the Resolution Professional, a representative from the financial creditor (ICICI Bank), and a representative from the SRA will supervise the plan’s implementation until the “Closing Date.”
- Binding Nature: The approved plan is binding on the corporate debtor, its employees, members, creditors, and guarantors. All claims not part of the resolution plan stand extinguished.
- Moratorium Ceases: The moratorium imposed under Section 14 of the IBC ceased to have effect from the date of the NCLT order.
The tribunal’s approval paves the way for the revival of Ushdev Engitech, which is involved in generating renewable energy through wind power plants, under the new ownership and management of Mr. Rakesh Ramanlal Shah.
Also See: JTL Industries acquires RCI Industries for Rs 46.5 crore
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