NCLT passed the approval order in the favour of the resolution plan on September 4, as per the exchange notification
The resolution plan of the steel maker Ramsarup Industries has been approved by the Kolkata bench of the National Company Law Tribunal.
In a notification to the BSE on Tuesday, the Kolkata-based steel maker said that the NCLT has approved the resolution plan submitted by the consortium of SS Natural Resources and Shyam SEL and Power, by a vote of 74.41% of the voting share of the Committee of Creditors (CoC), through the e-voting process concluded on March 16, 2019. NCLT passed the approval order in the favour of the resolution plan on September 4, as per the exchange notification. The trading in the shares of the company has been requested to be suspended upon approval of the resolution plan.
The maker of wires and TMT bars was one of those companies who moved to the NCLT in 2017 on its own declaring itself insolvent. One of its creditors ICICI Bank had opposed the application filed by Ramsarup saying the move was to disrupt the creditors' efforts to recover overdue loans. However, the tribunal admitted the defaulter's voluntary petition for insolvency and imposed a moratorium on the process of bad loan recovery by the ICICI Bank initiated under the Sarfaesi Act.
The proposed offer as part of the resolution plan based on the admitted claims was Rs 670.50 crore, as the financial creditors agreed to have a haircut of 94% of their admitted claim of Rs 5,853 crore and would only get 5.8% of the claim, whereas operational creditors would get 38.82% of its total admitted claim of Rs 224.05 crore, that is, Rs 10.50 crore. Total claims admitted were Rs 6,077.14 crore.
The resolution plan witnessed a series of affidavit and counter affidavit filed by its creditors, as well as objections raised by the promoter director and other applicants.
Aashish Jhunjhunwala, promoter director of the company, challenged the resolution plan on ground that the resolution bid amount was substantially below the liquidation value of the corporate debtor and the resolution plan does not call for maximisation of the assets of the corporate debtor, and therefore, liable to be rejected. However, the total proposed bid amount was higher than the liquidation amount of Rs 610.29 crore. Several other contentions were also raised by Jhunjhunwala, including ineligibility of SS Natural under Section 29A and the methodology followed in the case to distribute the money. Two unsuccessful resolution applicants, Orissa Metaliks and SREI Multiple Asset Investment Trust–Vision India had also raised several objections to the resolution plan approved by the CoC.
Shares of the company closed on Monday on BSE at Rs 0.70 per scrip, up 4.48% its previous close. The company has not paid annual listing fees and is in violation of the Sebi and Exchange Regulations.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Steel")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}