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Sole bidder for Jyoti Structures asked to revise resolution plan

Our Bureau Mumbai | Updated on November 29, 2018 Published on November 29, 2018

To cut down repayment period, increase offer to creditors

The National Company Law Appellate Tribunal (NCLAT) has on Thursday ordered the only bidder for Mumbai-based infrastructure EPC company Jyoti Structures Ltd. to revise its resolution plan by cutting down the repayment period from 15 years to 5 years and increasing the down payment offer to creditors.

Jyoti Structures was in the list of first 12 corporate debtors identified by the Reserve Bank of India for insolvency resolution under The Insolvency and Bankruptcy Code, 2016 (IBC).

The company owes over ₹7,300 crore to a group of banks with State Bank of India, IndusInd Bank, DBS Bank and Allahabad Bank being some of the largest lenders.

Resolution plan

The only resolution plan submitted by a consortium of investors led by Sharad Sanghi, the founder of Netmagic, proposed down payment of ₹170 crore to the lenders with the balance of around ₹3,600 crore to be paid over a period of 15 years.

After the plan failed to muster the required 75 per cent of votes from the creditors within the deadline, the Mumbai bench of the NCLAT ordered liquidation of the company.

Stay on order

However, in August this year, the NCLAT granted an interim stay on the liquidation after hearing the plea of a group of investors. The matter will be heard by the NCLAT on December18.

Published on November 29, 2018
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