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The National Company Law Tribunal, Chennai bench, has approved the resolution plan for the debt-ridden Forward Shoes India Pvt Ltd.
The move is expected to benefit employees and creditors of the company as all outstanding creditors who have filed claims will get their principal and the financial creditor will be paid with interest.
This is the first resolution plan from Tamil Nadu and was submitted by the Applicant AceStar Properties Pvt Ltd, Chennai. The applicant will develop the land belonging to Forward Shoes, the corporate debtor. The plan also provides for the payment of interest of ₹14 crore to financial creditor whose outstanding dues are ₹106 crore.
The implementation of the resolution plan is estimated to generate a turnover of ₹512 crore to AceStar Properties and net inflow of funds of ₹158 crore to Forward Shoes to pay off its outstanding debts, according to a press release.
This plan will benefit 2,000 employees, 250 operational creditors, financial creditor and statutory authorities.
Kavitha Surana was the resolution professional of the Forward Shoes . Advocate Aravindh Pandian appeared for the resolution professional and presented the plan. Mohammed Sherif Tariq of NCLT Chennai bench approved the plan, taking into consideration specified by Insolvency and Bankrupcy Board of India.
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