2021 (12) TMI 1334 - Tri - Insolvency and Bankruptcy

Successful Approval of Panacealife Healthzone's Resolution Plan

Alchemist Asset Reconstruction Company Limited Versus Panacealife Healthzone Private Limited

Alchemist Asset Reconstruction Company Limited Versus Panacealife Healthzone Private Limited - TMI Issues Involved:1. Approval of the Resolution Plan under section 30(6) read with section 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC).2. Compliance with IBC and CIRP Regulations.3. Evaluation and voting on the Resolution Plan.4. Salient features and financial proposals of the approved Resolution Plan.5. Compliance of the successful Resolution Plan with various provisions.6. Details of Resolution Plan/Payment Schedule.7. Management/Implementation and Relief as per the Resolution Plan.8. Waivers, Reliefs, and Exemptions sought by the Resolution Applicant.9. Findings and Orders by the Tribunal.Issue-wise Detailed Analysis:1. Approval of the Resolution Plan:The application IA (IBC) No. 98/ALD/2021 was filed by the Resolution Professional (RP) for Panacealife Healthzone Private Limited under section 30(6) read with section 31(1) of the IBC for approval of the Resolution Plan. The application was filed on 22.02.2021 and approved by 100% CoC on 08.02.2021.2. Compliance with IBC and CIRP Regulations:The public announcement was made on 07.09.2020, calling for proof of claims from creditors. The claims admitted and proposed to be paid were detailed, and discrepancies in amounts were noted for clarification by the RP. Seven CoC meetings were held, and the invitation for Expression of Interest (EoI) was published on 14.11.2020. The RP received prospective plans from three applicants, with the final plan received from City Hospital.3. Evaluation and Voting:The CoC enquired about the possibility of revising the bid amount, which was declined by the Resolution Applicant. The Plan was placed for e-voting on 03.02.2021 and concluded on 08.02.2021, receiving 100% approval from the CoC.4. Salient Features and Financial Proposals:The Resolution Applicant confirmed payment of CIRP costs, Operational Creditors, and Financial Creditors within 90 days from the approval date. The amount being paid through the Resolution Plan was higher than the average liquidation value. The key financial proposals were detailed in the Resolution Plan.5. Compliance with Various Provisions:The Resolution Plan adhered to section 30(2) of the Code and mandatory contents as per regulation 38 of CIRP Regulations. The successful resolution applicant submitted the required certificates and undertakings, and a Compliance Certificate in Form H was filed.6. Details of Resolution Plan/Payment Schedule:The Resolution Plan defined the 'Effective Date' and outlined the payment schedule for CIRP costs, Operational Creditors, and Financial Creditors within 90 days from the approval date. The total plan size was approximately Rs. 36.33 crore, inclusive of future capital expenditure.7. Management/Implementation and Relief:The Resolution Plan provided for the management and control of the Corporate Debtor, implementation and supervision of the plan, and the restructuring of share capital. The Resolution Applicant and its nominees would hold 100% shareholding in the restructured share capital.8. Waivers, Reliefs, and Exemptions:Various reliefs and exemptions were sought by the Resolution Applicant, including waivers from stamp duty, taxes, and statutory liabilities. The Tribunal granted some reliefs based on the Supreme Court judgment in Ghanashyam Mishra & Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Ltd., while others were not granted or required compliance with existing laws.9. Findings and Orders:The Tribunal found that the Resolution Plan was approved with 100% voting share and complied with sections 30 and 31 of the Code and regulations 37, 38, and 39 of CIRP Regulations. The Resolution Plan was approved, binding on the Corporate Debtor and other stakeholders. The Moratorium under section 14 ceased, and the RP was discharged from duties, with the Resolution Applicant directed to comply with statutory obligations within one year. The application IA (IB) No. 98/ALD/2021 and Company Petition CP (IB) No. 458/ALD/2019 were disposed of accordingly.