The resolution plan of the applicant, GMSPL, was approved by the CoC in a meeting convened on April 25.
The Kolkata bench of the National Company Law Tribunal (NCLT) on Friday approved the resolution plan submitted by Ghanashyam Misra & Sons (GMSPL) for acquiring bankrupt Orissa Manganese and Minerals (OMML), a subsidiary of Adhunik Metaliks.
“The resolution plan of GMSPL which is approved by the CoC (committee of creditors) by more than 89.23% voting share is hereby approved under provisions of section 31 (1) of the Insolvency & Bankruptcy Code, 2016…” said a division bench of the tribunal comprising Justices Jinan KR and Madan B Gosavi.
According to the resolution plan of GMSPL, the company will pay a total of Rs 321.19 crore to acquire OMML, while it will make an upfront payment of Rs 250 crore within 90 days. Total payment to the financial creditors will be Rs 310 crore.
OMML owes close to Rs 5,400 crore to its lenders. Its lenders include State Bank of India, Punjab National Bank, Bank of Baroda, ICICI Bank and Allahabad Bank, among others. The insolvency petition was filed before the NCLT by SBI.
The resolution plan of the applicant, GMSPL, was approved by the CoC in a meeting convened on April 25. Of 17 financial creditors, three creditors, having a voting share of 10.77%, voted against the resolution plan of the Kolkata-based company.
There were three resolution applicants for the debt-laden company: GMSPL, Edelweiss Asset Reconstruction Co and Srei Infrastructure Finance. These resolution plans were considered by the CoC on April 13 and after evaluation and scoring of the resolution plans, the creditors ranked the resolution plan submitted by GMSPL as the highest bidder (H1).
Challenging the approval of Ghanashyam Mishra & Sons’ resolution plan, Edelweiss ARC had filed an application before the tribunal, alleging that the ranking of the bidders was not legal or proper, and selection of the resolution plan and approval of the selected resolution plan by the CoC did not meet the requirement to be meted out under provisions of the IBC.
In his reply, Sumit Binani, the resolution professional (RP) of the insolvent company, denied the allegations made by Edelweiss ARC. Binani said the CoC had decided that the enterprise value of the proposed equity stake in the bankrupt company should be paid as upfront cash, which was not agreed to by the asset reconstruction company.
Further, the district mining officer of Jharkhand had challenged non-admission of its total claim of over Rs 850 crore submitted before the RP. Filing a reply affidavit, Binani denied all the allegations, contending that despite communication given to the authority for submission of its claim with supporting documents, it failed to give responses.
Orissa Manganese & Minerals, a 100% subsidiary of Adhunik Metaliks, is engaged in the business of exploration, development, mining and processing of mineral assets. The company has six manganese ore mines in Odisha and one iron ore mine in Jharkhand.