Adani Ports' Resolution Plan Approved with Modifications - Stakeholders Bound by Tribunal Decision

The Tribunal approved the resolution plan submitted by Adani Ports Special Economic Zone Ltd. (APSEZ) with modifications, binding on all stakeholders, including the corporate debtor, employees, members, creditors, guarantors, and the resolution applicant. The plan, approved by 99.68% of the Committee of Creditors (CoC), complied with the Insolvency and Bankruptcy Code and CIRP Regulations. It included a detailed payment schedule, an implementation and monitoring committee, and granted specific reliefs and concessions. The resolution professional was directed to forward all records to the Insolvency and Bankruptcy Board of India (IBBI).

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Issues Involved:
1. Approval of the resolution plan under section 31 of the Insolvency and Bankruptcy Code, 2016.
2. Evaluation and selection of the resolution plan by the Committee of Creditors (CoC).
3. Compliance with the provisions of the Insolvency and Bankruptcy Code and CIRP Regulations.
4. Consideration of revised offers and settlement proposals.
5. Implementation and monitoring of the approved resolution plan.
6. Reliefs and concessions sought under the resolution plan.

Detailed Analysis:

1. Approval of the resolution plan under section 31 of the Insolvency and Bankruptcy Code, 2016:
The application filed by the resolution professional sought the approval of the resolution plan submitted by Adani Ports Special Economic Zone Ltd. (APSEZ). The resolution plan was approved by the CoC with 99.68% voting share. The Tribunal approved the resolution plan with certain modifications, making it binding on all stakeholders, including the corporate debtor, employees, members, creditors, guarantors, and the resolution applicant.

2. Evaluation and selection of the resolution plan by the Committee of Creditors (CoC):
The CoC evaluated resolution plans submitted by Jawaharlal Nehru Port Trust (JNPT), APSEZ, and Veritas Consortium. APSEZ’s plan scored the highest but was initially rejected. Subsequently, JNPT’s plan was approved but later JNPT expressed inability to accept modifications directed by the Tribunal. The CoC decided to reconsider all plans, and ultimately, APSEZ’s revised plan was approved by 99.68% of the CoC.

3. Compliance with the provisions of the Insolvency and Bankruptcy Code and CIRP Regulations:
The resolution professional confirmed that the resolution plan complied with the provisions of the Code and CIRP Regulations. APSEZ’s eligibility under section 29A of the Code was verified, and the plan included a statement under regulation 38(1A) of the CIRP Regulations addressing the interests of all stakeholders.

4. Consideration of revised offers and settlement proposals:
APSEZ submitted a revised offer of INR 650 crores, which could not be placed before the CoC as it was received after the approval of JNPT’s plan. The promoters of the corporate debtor also submitted a settlement offer of INR 680 crores, but it was not approved by the CoC. The CoC ultimately approved APSEZ’s revised plan.

5. Implementation and monitoring of the approved resolution plan:
An implementation and monitoring committee was constituted to supervise the day-to-day affairs of the corporate debtor until the effective date. The committee comprised nominees from the resolution professional, the resolution applicant, and the approving financial creditors. The plan outlined a payment schedule for different stakeholders, with financial creditors to receive INR 650 crores within 30 days of the effective date.

6. Reliefs and concessions sought under the resolution plan:
The resolution plan sought various reliefs, including extinguishment of tax liabilities and financial liabilities related to environmental and CRZ clearance non-compliance. The Tribunal allowed some reliefs but denied others, such as tax liability arising from the sub-concession agreement for berth development. The resolution applicant was required to comply with applicable laws and obtain necessary approvals.

Conclusion:
The Tribunal approved the resolution plan submitted by APSEZ with modifications, ensuring compliance with the Insolvency and Bankruptcy Code and CIRP Regulations. The approved plan included a detailed payment schedule and provisions for effective implementation, with specific reliefs and concessions granted as necessary. The resolution professional was directed to forward all records to the Insolvency and Bankruptcy Board of India (IBBI).

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