Home Insolvency & Bankruptcy NCLT approves Rs 74.81-crore resolution plan for Ujaas Energy

NCLT approves Rs 74.81-crore resolution plan for Ujaas Energy

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NCLT approves Rs 74.81-crore resolution plan for Ujaas Energy

The Rs 74.81 crore decision plan submitted by consortium of SVA Household Welfare Belief and M&B Switchgears for Ujaas Power Ltd has been authorized by the Nationwide Firm Legislation Tribunal.

As per the decision plan, secured monetary collectors will obtain Rs 68.81 crore in opposition to their whole admitted claims of Rs 144 crore. Unsecured monetary collectors, who voted in favour of the decision plan, will obtain 50 lakh fairness shares of the corporate priced at Re 1. Operational collectors will obtain Rs 20.5 lakh in opposition to their admitted claims of Rs 92.19 crore. Out of the full sum supplied in direction of the decision, Rs 5.77 crore shall be in direction of working capital requirement of the corporate.

The Company Insolvency Decision Course of (CIRP) was initiated in opposition to Ujaas Power Restricted in September 2019. Ujaas Power owed Rs 150 crore to its collectors.

The decision plan proposes to restructure the share capital of the Ujaas Power within the type of a demerger of the company debtor. The enterprise of the company debtor is to be divided into three segments – (a) Sale of Solar energy plant, solar energy technology, operation & upkeep, manufacturing {of electrical} automobiles; (b) transformer enterprise; and (c) energy buying and selling and advisory.

The consortium of SVA Household Welfare Belief and M&B Switchgears envisages the demerger of the transformer enterprise (demerged enterprise 1) and energy buying and selling and advisory enterprise (demerged enterprise 2) of the company debtor into ensuing firm 1 & ensuing firm 2, respectively in such a way that each one property & liabilities, rights and obligations regarding the demerged enterprise 1 & 2 shall be vested with the ensuing Firm 1 & 2 respectively. The Ensuing Firm 1 & 2 shall be new corporations freshly integrated to fulfill the necessities of this decision plan.

It’s to be talked about right here that the Indore Bench of the NCLT in its 6 January 2023 order had refused to authorized the Rs 74.81 crore decision plan submitted by SVA Household Welfare Belief on the bottom that the plan contained a provision for extinguishment of private assure of the private guarantors given in favour of the Financial institution of Baroda.

Nevertheless, the NCLT overturned the order after noting that each one monetary collectors had assented for relinquishment of such safety besides Financial institution of Baroda which had solely 5.83% vote share.

Additionally See: Ujaas Power decision again on monitor after NCLAT reverses NCLT order

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