The case involves an application for approval of a resolution plan for Ramsarup Industries Limited, a corporate debtor undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated following the company's inability to pay its debts. The resolution plan, approved by the Committee of Creditors (CoC) with a 74.41% voting share, faced numerous objections from various stakeholders, including operational creditors, financial creditors, unsuccessful bidders, and the promoter director of the suspended board of directors. These objections primarily concerned the distribution methodology, priority of payments, eligibility of the resolution applicant, and alleged manipulation of the CIRP process.
Ramsarup Industries Limited underwent CIRP due to its inability to pay debts, initiated via CP(IB) No. 349/KB/2017. The CoC approved a resolution plan with 74.41% vote share. Numerous applications were filed objecting to the plan by Operational Creditors (OCs), Financial Creditors (FCs), unsuccessful bidders, and the promoter director. OCs claimed priority over FCs and discrimination in bid amount distribution. FCs challenged the distribution methodology based on security interest. The promoter director alleged undervaluation, CIRP manipulation, and ineligibility of the resolution applicant. The resolution plan proposed a haircut of 94% for FCs, resulting in 5.8% recovery of their admitted claims of Rs. 5853.00 crores. OCs were to receive Rs. 10.50 Crores out of
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Corporate Applicant/ M/s. Ramsarup Industries…
The Application was admitted vide Order dated…
The case involves an application for approval of a resolution plan for Ramsarup Industries Limited, a corporate debtor undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated following the company's inability to pay its debts. The resolution plan, approved by the Committee of Creditors (CoC) with a 74.41% voting share, faced numerous objections from various stakeholders, including operational creditors, financial creditors, unsuccessful bidders, and the promoter director of the suspended board of directors. These objections primarily concerned the distribution methodology, priority of payments, eligibility of the resolution applicant, and alleged manipulation of the CIRP process.
Ramsarup Industries Limited underwent CIRP due to its inability to pay debts, initiated via CP(IB) No. 349/KB/2017. The CoC approved a resolution plan with 74.41% vote share. Numerous applications were filed objecting to the plan by Operational Creditors (OCs), Financial Creditors (FCs), unsuccessful bidders, and the promoter director. OCs claimed priority over FCs and discrimination in bid amount distribution. FCs challenged the distribution methodology based on security interest. The promoter director alleged undervaluation, CIRP manipulation, and ineligibility of the resolution applicant. The resolution plan proposed a haircut of 94% for FCs, resulting in 5.8% recovery of their admitted claims of Rs. 5853.00 crores. OCs were to receive Rs. 10.50 Crores out of
…Corporate Applicant/ M/s. Ramsarup Industries…
The Application was admitted vide Order dated…