The Kolkata bench of the NCLT approved Om Logistics's resolution plan on April 9, 2021.
The Kolkata bench of the National Company Law Tribunal (NCLT) has approved the resolution plan submitted by New Delhi-based Om Logistics for acquiring bankrupt Transafe Services, a joint venture of state-run Balmer Lawrie & Co, under the Insolvency and Bankruptcy Code (IBC).
Om Logistics, the highest bidder (H1) during the corporate insolvency resolution process (CIRP) for Transafe Services (TSL), has proposed to pay Rs 49 crore, whereas the total admitted claim was around Rs 533 crore. Under this insolvency resolution process, secured financial creditors will have to take a haircut of 87%.
The resolution plan submitted by Om Logistics was, however, approved by 100% votes of the Committee of Creditors (CoC) of Kolkata-based TSL, a joint venture of Balmer Lawrie & Co (BL) and Balmer Lawrie — Van Leer (BLVL) with each holding 50% shares. The firm is specialised in the design and manufacture of containers and tanks. Western Carriers (India), which offered Rs 47.65 crore, was declared the H2 bidder.
Notably, Syndicate Bank, merged into Canara Bank from April, 2020, had moved the NCLT against Transafe Services on the ground that the company had committed default in paying financial debt of Rs 83.68 crore. Other financial creditors are Axis Bank, HDFC Bank, Karur Vysya Bank and Bank of India, among others. The NCLT, vide its order dated November 21, 2019, admitted the application for commencing the CIRP against Transafe Services. Anil Agarwal, partner in AAA Insolvency Professionals, was appointed as the Resolution Professional (RP) of Transafe Services.
As many as seven companies had submitted EoIs for the insolvent company, and amongst these, three have finally submitted resolution plans, informed sources told FE. The Kolkata bench of the NCLT approved Om Logistics’s resolution plan on April 9, 2021.
Transafe Services, a non-govt company, started its journey in 1990-91 with the business of leasing of various types of containers for road and rail transportation of goods. Later, it forayed into the business of specialty container manufacturing and logistics services. In 2018-2019, the company had a turnover of around Rs 24.95 crore, while it incurred a loss of `23.86 crore.
According to Balmer Lawrie’s annual report for the financial year 2019-20, TSL was facing rough weathers since 2009-10 and during the financial year 2012-13, its accumulated losses surpassed its net worth and consequently in 2013, a suo-moto application for revival was made before erstwhile Board for Industrial & Financial Reconstruction (BIFR) under the repealed Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). Due to the emergence of the Insolvency and Bankruptcy Code, 2016 (IBC) the pending application before BIFR became inactive, since December, 2016.