TaxTMI 
TaxTMI 
2019 (3) TMI 1686
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....e Insolvency Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by M/S. Agarwal Coal Corporation PHvate Limited (in short, 'Operational Creditor') against Corporate Debtor viz., M/S. Danalakshmi Paper Mills Private Limited, was admitted by this Authority vide Order dated 29.05.2018, CIR Process was initiated against the Corporate Debtor, moratorium was declared and one Mr. Koppolo Ramarathnam was appointed as IRP. 4. The IRP took over the management and affairs of the Corporate Debtor and caused public announcement on 08.06.2018 under Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons), Regulations, 2016, for filing the claims by the creditors. After verification of the claims received, the IRP constituted Committee of Creditors (COC). 5. In the 1st Meeting of the COC held on 04.07.2018, the Applicant viz., Mr. P. Easwaramoorthy was appointed as Resolution Professional. During the CIR Process, the COC convened its meetings from time to time. 6. The 'Expression of Interest' ('Eol') was invited by the Resolution Professional through newspaper publication on 23.08.2018 to seek t....
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....egulations, an opportunity was given to it to submit the Plan in accordance with the IBC Regulations. Accordingly, a revised Resolution Plan was submitted by the Resolution Applicant on 28.11.2018 along with an Affidavit stating that they are eligible under Section 29 A of the I&B Code, 2016. 10. In the 6th Meeting of COC held on 16.02.2019, the Resolution Professional placed before the COC the revised Resolution Plan submitted by M/S. Hero Fashion. After discussions and deliberations, the COC was of the opinion that, a) amount proposed in the Resolution Plan is less than the liquidation valuc, b) Resolution Applicant does not have any experience and exposure in paper industry, c) As stated in the Resolution Plan, funds will be sourced by way of long term loan. However, no such sanction or approval from the Bank/ others attached and d) Proposed Plan is not commercially viable and feasible and hence, the COC unanimously rejected the Resolution Plan submitted by M/S. Hero Fashion. 11 . The Resolution Plan submitted by M/S. Srinivasa Garments Private Limited jointly with Mr. P. Ramesh & Mrs. Suganthi Ramesh was placed before the COC by the Resolution Professional in the same 6th....
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..... Summary of Resolution amount proposed in the resolution plan is as follows:- Particulars Total amount Rs. In Crores CIRP cost 0.30 Payment to FC - Secured (both Term Loan Lenders and Working Capital Lenders) 27.79 Payment to FC - Unsecured by way of preferential 10.00 Payment to Workmen and Employees 0.03 Payment to OC 1.71 Towards Statutory Dues 0.23 Payment to Equity 0.00 Payment of Contingent Liability 0.39 TOTAL 40.45 16. Resolution Plan provides for Rs.l .25 Crores as upfront payment upon approval of the Resolution Plan by the COC and the Balance of Rs. 29.20 Crores will be paid within 60 days from the date of Approval of the Adjudicating Authority into the escrow account to be opened by the Resolution Professional and remaining Rs. 10 Crores will be paid through issue of preferential shares towards payment to the unsecured financial creditors within six months from the date of payment to the financial creditors in full. 17. It further provides for (a) the term of the Plan and its implementation schedule: (b) the management and control of the business of the Corporate Debtor during its term; and (c....
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.... majority in accordance with section 30 (4) of the Code read with regulation 39 (3) of the CIRP Regulations, 2016. 22. The Resolution plan provides that the Resolution Professional shall manage the affairs of the Company and shall open an escrow account in the Corporate Debtor's name. The Resolution Applicant shall infuse funds to the tune of Rs. 30.45 crores within sixty days from the effective date. The Resolution Professional shall operate the said account and settle all the stakeholder as per the approved Resolution Plan within 10 days from the date of remittance of the amount by the Resolution Applicant. The Resolution Applicant will make further arrangement of infusing working capital as and when required after effective date in consultation with the present Resolution Professional for its smooth operation during implementation of Resolution Plan. The Resolution professional is proposed for implementation and supervision of the Resolution Plan. The Resolution Plan further provides that the Resolution Applicant will appoint Board of Directors after approval of the plan by Adjudicating Authority. Accordingly, the MOA and AoA shall be amended and filed with the ROC for....