The case pertains to the approval of a resolution plan submitted under Section 30(b) of the Insolvency and Bankruptcy Code (IBC), 2016. The insolvency proceedings were initiated based on a petition filed by an operational creditor, M/s. Mechano Engineering Works, due to a default of Rs. 12,45,907 by the corporate debtor, M/s. Propel Valves Private Limited. The Committee of Creditors (CoC) had only one member, SBI, holding 100% of the voting power. The financial creditor confirmed that the corporate debt is considered a standard asset and the corporate debtor is a going concern as a SME and has not defaulted on payments to its creditors as and when due.
M/s. Mechano Engineering Works initiated insolvency proceedings against M/s. Propel Valves Private Limited due to a default of Rs. 12,45,907. SBI, the sole member of the CoC, held 100% voting power. The corporate debt was considered a standard asset, and the corporate debtor was a going concern. The financial creditor waived the duty of the RP under Section 25 to invite resolution plans from the general public. The promoter Directors of the Corporate Debtor submitted a resolution plan, which was approved by the CoC. The resolution plan proposed that additional funds brought in as a loan would be subject to a repayment holiday of three years and carry an interest rate of 10.95% p.a. The resolution plan did not envisage any haircut for creditors.
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Order delive…
Resolution Applicants have brought in funds…
The case pertains to the approval of a resolution plan submitted under Section 30(b) of the Insolvency and Bankruptcy Code (IBC), 2016. The insolvency proceedings were initiated based on a petition filed by an operational creditor, M/s. Mechano Engineering Works, due to a default of Rs. 12,45,907 by the corporate debtor, M/s. Propel Valves Private Limited. The Committee of Creditors (CoC) had only one member, SBI, holding 100% of the voting power. The financial creditor confirmed that the corporate debt is considered a standard asset and the corporate debtor is a going concern as a SME and has not defaulted on payments to its creditors as and when due.
M/s. Mechano Engineering Works initiated insolvency proceedings against M/s. Propel Valves Private Limited due to a default of Rs. 12,45,907. SBI, the sole member of the CoC, held 100% voting power. The corporate debt was considered a standard asset, and the corporate debtor was a going concern. The financial creditor waived the duty of the RP under Section 25 to invite resolution plans from the general public. The promoter Directors of the Corporate Debtor submitted a resolution plan, which was approved by the CoC. The resolution plan proposed that additional funds brought in as a loan would be subject to a repayment holiday of three years and carry an interest rate of 10.95% p.a. The resolution plan did not envisage any haircut for creditors.
Order delive…
Resolution Applicants have brought in funds…