Home Insolvency & Bankruptcy Rs 79-crore resolution plan for Leela Trade Steel and Commodities

Rs 79-crore resolution plan for Leela Trade Steel and Commodities

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Rs 79-crore resolution plan for Leela Trade Steel and Commodities

Ritzee-Pritesh Mehta JV, a Joint Enterprise of Pritesh Futarmalji Mehta and Ritzee Recycling Personal Restricted, has efficiently bid for Pune-based Leela Commerce Metal and Commodities India Personal Ltd.

The Mumbai bench of the Nationwide Firm Legislation Tribunal (NCLT) has authorized the JV’s Rs 79.26 crore decision plan. The decision plan was earlier authorized by the committee of collectors (CoC) by 100% vote share.

One of many companions within the JV — Pritesh Futarmalji Mehta – was the erstwhile promoter of the Leela Commerce Metal and Commodities India Personal Ltd. Since Leela Commerce Metal and Commodities is assessed as an MSME unit on thirtieth March 2018, Pritesh Mehta was allowed to take part within the bidding course of.

Particulars of the Decision plan

The decision quantity is Rs 79.26 crore in opposition to the entire admitted collectors’ claims of Rs 169.5 crore. The liquidation worth of Leela Commerce Metal and Commodities was estimated to be Rs 30.57 crore and the honest worth at Rs 40.93 crore.

Of the entire quantity of Rs 79.26 crore offered within the decision plan, Rs 78.6 crore has been offered for secured monetary collectors, who had complete admitted claims of Rs 135.5 crore. Cosmos Financial institution, which had admitted claims of Rs 105 crore, acquired Rs 69 crore. JC Flowers ARC acquired Rs 8 crore in opposition to its complete claims of Rs 27.90 crore. ICICI Financial institution, which is the opposite secured monetary creditor, receives Rs 1.3 crore.

Unsecured collectors acquired Rs 60 lakh in opposition to their complete claims of Rs 4.13 crore. Operational collectors acquired round Rs 8 lakh.

The quantity of Rs. 70.48 crore is proposed to be paid to Cosmos Financial institution and ICICI Financial institution in installment inside a interval of 10 years. Additionally, the decision Applicant proposes to pay curiosity to Cosmos Financial institution on the excellent quantity on decreasing stability foundation on the charge of 6% easy curiosity.

After making fee of first 2 years to Cosmos Financial institution, the decision applicant will make the fee to the Cosmos Financial institution in quarterly installments from the third 12 months of the order of the NCLT approving the Decision Plan.

Association for JC Flowers ARC

The Decision Plan had contemplated a fee of Rs 18.31 crore JC Flowers ARC inside a interval of 10 years. Nonetheless, because the ARC wished an early exit, the profitable decision applicant proposed to pay an quantity of Rs 8.10 crore inside 4 quarters. Out of which an quantity of Rs 3.35 crore shall be paid inside 90 days and the stability Rs.4.75 crore shall be paid in 4 quarterly instalments.

Additionally Learn: NCLT approves Rs 256-crore decision plan for Motion Ispat and Energy

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