Amtek Group

Amtek Group www.infralive.com 28 Infra LIVE March 15, 2020 guarantee and hence, CoC & RP filed an application to withdraw the Resolution P l an o f LHG and we r e granted the same by NCLT, Delhi vide its order dated 11.12.2019 (Company Appeal (AT) (Ins) No.637 of 2019). h. As per direction of the NCLT, freshEoI was invited. i. A fresh invitation for submis- sion of Resolution Plan was published and Deccan Value Investors LP (DVI) submit- ted a resolutionplan. j. In the meeting of CoC on 0 6 . 0 1 . 2 0 2 0 , D V I w a s declaredH1 bidder. 7,313 crore (see table-2 at pg 27). d. Advertisement for EoI was published and last date for s ubmi s s i on o f Eo I wa s 29.01.2018. e. The resolution plan of Liberty House Group (LHG) was a p p r o v e d b y C o C o n 29 . 08 . 20 1 8 and a s p e r proc e s s no t e , LHG wa s required to furnish perfor- mance bank guarantee f. NCLT, Delhi, vide its order dated 04.09.2018, approved the resolutionplan of LHG. g. However, LHG failed to submit the performance bank a. Castex Technologies Ltd (CTL) was taken to NCLT by its lender vide order dated 20.12.2017 passed by NCLT, Chandigarh Bench and the public announcement to this e f f e c t w a s m a d e o n 24.12.2017 in a leading newspaper. b. D i n k a r T Venkatsubramaniam was appointed as the Interim Resolution Professional (IRP) who, later on, was confirmed as the Resolution Professional (RP) by CoC. c. The total admitted claim of Financial Creditors was Rs Box-2: Castex Technologies Ltd 16.08.2019, after noting that more than 270 days had passed, directed the Adjudi- cating Authority to pass appropriate order of liquida- tion, in accordance with law (Company Appea l (AT) (Insolvency) No. 219 of 2019). o. The matter was taken to the Supreme Court and vide orders dated 24.09.2019, 02.12.2019, 20.01.2020 & 10.02.2020, extensions of time was given to the CoC to start fresh bidding process (Civil Appeal No. 6707 of 2019). p. Fresh Invitation was issued and invitation of submission o f r e s o l u t i on p l an wa s published in newspaper on 03.12.2019, the last date of submission of plan being 31.12.2019. q. In the meeting of CoC on 0 6 . 0 1 . 2 0 2 0 , D V I w a s declaredH1 bidder. r. As per media report, DVI had offered Rs 2,700 crore with Rs 500 crores upfront cash a n d b a l a n c e d e f e r r e d payment with NPV of about Rs 1,500 crore which is much lower than the initial bid of LHG of Rs 4,025 crore and liquidation value of Rs 4,119 crores. comply with the resolution plan within the specific time. It failed to make payment to Financial Creditors at the stipulated time. In order dated 13.02.2019, the NCLT Chandigarh bench agreed that there is default by LHG in performing its obligation under the Resolution Plan and hence CoC and RP were allowed to approach the a p p r o p r i a t e f o r um f o r necessary remedy against wi l l ful de f aul t by LHG. T h e r e a f t e r , C I R P w a s extended till 09.04.2019 for CoC to consider the Plan of H2 bidder ieDVI. m. As per NCLAT's order dated 28.03.2019, time was granted t i l l 2 2 . 0 4 . 2 0 1 9 & DV I withdrew from its Resolution Plan. n. The CoC filed an application under Section 60(5) readwith Section 74(3) of the IBC before the Adjudi cat ing Authority with prayer to declare that LHG and its Promoters upon whom the 'Resolution Plan' is binding under Section 31 of the IBC, have knowingly contravened the terms of the 'Resolution P l an ' , h a v i ng f a i l e d t o implement the same. NCLAT, v i d e i t s o r d e r d a t e d Value was determined to be Rs 4,119 crore. The Resolu- t i o n P l a n o f LHG wa s approved by the CoC with voting share of 94.20 per cent vide E-voting on 04.04.2018. As per the resolution plan approved by the CoC, LHG offered upfront consider- ation (cash) for financial c r e d i t o r s a n d i n t e r i m resolution professional costs to the tune of Rs 3,225 crore and f r e s h i n f u s i on f o r stabilizing and improving operations to the tune of Rs 500 crore and the total resolution amount was Rs 4,025 crore. i. The 270 days period was expiring on 20.04.2018 and t he appr oved p l an wa s submitted to Adjudicating Authority on 16.04.2018. j. Uncertainty about eligibility of LHG as per Section 29A of I BC ( i e t h e d e f a u l t i n g promoter should not be in driver's seat once again). The CoC requested RP to make an application before NCLT for extension of 40 days of the IRP. k. The NCLT Chandigarh bench approved the resolution plan of LHG vide its order dated 25.07.2018. l. However, LHG failed to