NCLT clears Rs 30.33-crore resolution plan for Indian Soya Industries

The National Company Law Tribunal (NCLT) has approved the Rs 30.33-crore resolution plan submitted by Maa Annapurna Agritech Pvt Ltd, in consortium with Manorama Devi Jhavar, for debt-ridden Indian Soya Industries Pvt Ltd, bringing to a close a corporate insolvency resolution process (CIRP) that began in July 2020.

The Indore Bench of the NCLT approved the plan after noting that it had received 100% voting support from the Committee of Creditors (CoC) and met the requirements of the Insolvency and Bankruptcy Code (IBC). The successful resolution applicant has been given seven years from the effective date to implement the plan.

The approved plan envisages a total resolution amount of Rs 30.33 crore, inclusive of CIRP costs. The resolution value is higher than both the company’s fair value of Rs 27.16 crore and liquidation value of Rs 20.12 crore. Secured financial creditors are expected to recover 61.13% of their admitted claims under the plan.

The resolution plan emerged as the highest bid during the insolvency process. According to the tribunal’s order, Maa Annapurna Agritech’s proposal offered a total outlay of Rs 30.33 crore, compared with Rs 24.80 crore by Samyak International Ltd and Rs 24.42 crore by Bio-Treasure Overseas. On a net present value (NPV) basis, the successful bid was also the highest at Rs 27.04 crore.

As per the distribution mechanism approved under the resolution plan, CIRP costs will be paid in full on priority, followed by payments to operational creditors, statutory authorities and secured financial creditors in accordance with Section 30(2) of the IBC. The plan provides an overall payout of Rs 30.33 crore towards stakeholders, including insolvency resolution costs and statutory dues.

Indian Soya Industries was admitted into the Corporate Insolvency Resolution Process on July 14, 2020, following a petition under the Insolvency and Bankruptcy Code. The resolution professional invited expressions of interest and received multiple bids before the Committee of Creditors approved the plan submitted by Maa Annapurna Agritech and its consortium partner with a unanimous vote in August 2021. The application seeking NCLT approval of the plan was filed on September 30, 2021.

In its order, the tribunal observed that the approved resolution plan complies with the provisions of the IBC and the accompanying regulations and would ensure the revival of the corporate debtor as a going concern while balancing the interests of creditors and other stakeholders.

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