- (1.) Order pronounced in the Court on 23.11.2017 MA 557/2017 It is a miscellaneous application filed by Resolution Applicant namely Suyash Outsourcing Pvt. Ltd. against Bank of India (Rl) , Bank of Baroda (R2) , UCO Bank (R3) , Canbank Factors Ltd. (R4) , IFCI Factors (R5) , ICICI Bank Ltd. (R6 - the Financial Creditor who moved this CP 01/2016 u/s 7 of IBC) , Innoventive Industries Ltd. (R7 - It is the Corporate Debtor against which R6 filed this CP) seeking this Bench to grant reliefs: a. To declare that the position of law clarified by the Ministry of Corporate Affairs by general Circular No. IBC/01/2017 -Notification No. 30/14/2017 - Insolvency dated October 25, 2017 would be applicable to the corporate insolvency resolution process of the Corporate Debtor; b. To declare that the in view of General Circular No. IBC/01/2017 - Notification No. 30/14/2017 - Insolvency dated October 25, 2017, approval of shareholders of the Original Respondent for actions under the resolution plan for its implementation which would have been required under the Companies Act, 2013 or any other law would not be required and would be deemed to have been given upon approval of a resolution plan by this Bench; c. To allow this Applicant to submit revised Resolution Plan after reducing the time earlier envisaged for obtaining shareholders' approval from the period for making cash payments for fresh vote thereon; d. To direct the Resolution Professional to present to the Committee of Creditors, modified Resolution Plan after reducing the time earlier envisaged for obtaining shareholders' approval from the period for making cash payments under the Resolution Plan for fresh vote thereon; e. To direct the financial creditors comprised in the Committee of Creditors to cast votes on such modified Resolution Plan;
(2.) The applicant says that this application has been filed by it and on behalf of other resolution applicants namely Kitara International Ltd. and Lighthouse Partners. It says that the Corporate Debtor (R7) is a multi-product company catering to applications in diverse sectors such as automobile, boiler and heat exchangers, energy, oil and general engineering. It specializes in processing various types of steels, faster development cycles, flexible production systems, effective supply chain management for efficient delivery and capability to make tubular transformations and it always comes out with continuous innovations.
(3.) The resolution applicant on September 3, 2017 submitted a term sheet along with proposed Resolution Plan for Rs. 284.3crores (in present value terms) @13% discounting rate with a compulsory change in management of the company to make a cash payment of around Rs. 180crores within a period of one year subject to all approvals and for conversion of residual debt (Rs. 1191.9crores) into Cumulative Convertible Optionally Redeemable Preferential Shares (CCORPS) , redemption @ 0.01% of which would be guaranteed by the promoter by way of personal guarantee payable in instalment at the end of 20 years, the coupons on CCORPS shall be paid annually to the Financial Creditor, the payment towards coupon on the proposed CCORPS shall not start before dissenting lenders are settled. Unsecured lenders having dues of Rs. 41.6crores will be paid by converting Rs. 36.1crores due to Canbank Factors Ltd. and IFCI Factors Ltd. shall be converted into 0.01% CCORPS payable in one instalment at the end of 20 years. The applicant has further stated that the Resolution Plan estimated total recovery of Rs. 284.3crores as against proposed recovery of Rs. 135.4crores through liquidation.;