NCLT nod for Kamini Metalliks taking over VBC Industries

V Rishi Kumar Hyderabad | Updated on January 25, 2021

As per the arrangement, Kamini Metalliks will pay ₹57 crore to the VBC lenders.

The National Company Law Tribunal , Hyderabad has approved the resolution plan of Kamini Metalliks for debt-strapped VBC Industries.

VBC Industries, which was earlier declared insolvent, will now have a new owner in Kamini Metalliks which offered ₹98 crore with its bid.

Judicial member K Anantha Padmanabha Swamy and Member Technical Binod Kumar Sinha of the NCLT Hyderabad, on a petition moved by the corporate debtor, approved the resolution plan filed by Kamini Metalliks.

Lenders had moved NCLT for a resolution against the VBC Industries, which had raised about ₹268 crore from various bank facilities but could not keep up its commitments to repay the dues.

TSN Raja, the resolution professional, in the case, assured that various dues to workers would be paid. As per the arrangement, Kamini Metalliks will pay ₹57 crore to the VBC lenders.

The NCLT case was admitted for the corporate resolution process under the Banking and Insolvency Code, 20016 and CS Ahalada Rao V was appointed as Interim resolution professional. Subsequently, on the recommendation of the Committee of Creditors TSN Raja was appointed as the resolution professional.

The NCLT invited expression of interest (EoI) for the resolution process and received interest from Raaga Mayuri Builders, Amaravathi Textiles and Kamini Metalliks. The proposal of Kamini Metalliks and offer of ₹98.15 crore was approved. The liquidation value of corporate debtor estate was estimated at ₹72 core, and its investments are valued ₹27 crore. Most of the investment is in Konaseema Gas Consortium.

The Committee of Creditors had voted with 100 per cent recommending the resolution plan for its approval. IFCI, Phoenix ARC, and Shriram City Union Finance Limited contributed to 100 per cent vote in favour of the resolution.

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Published on January 25, 2021
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