State Bank of India, a financial creditor of Unimark Remedies Ltd. (the corporate debtor), filed an application seeking an order to declare the decision of the Committee of Creditors (CoC) in its 14th meeting held on 26.12.2018 as invalid. The CoC had decided to distribute an additional Rs. 10 crores offered by the Successful Resolution Applicant amongst the Financial Creditors based on the charge on assets of the Corporate Debtor. SBI argued that this distribution was discriminatory and lacked legal sanctity. SBI sought a direction to the CoC to distribute the amount on a pro rata basis to all Financial Creditors.
The Corporate Insolvency Resolution Process (CIRP) of Unimark Remedies Ltd. was initiated based on an application filed by ICICI Bank. Amit Gupta was appointed as the Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors (CoC), in which State Bank of India held a 9.37% voting share. During a CoC meeting on 26.12.2018, the Resolution Applicant improved the resolution amount by Rs. 10 crores. The Process Advisor (PWC) proposed distributing this additional amount among Financial Creditors who were negatively affected by the distribution of Rs. 111 crores, the originally proposed plan amount, based on their voting share. The additional Rs. 10 crores were to be distributed only among nine Financial Creditors, not all. State Bank of India
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CIRP of Unimark…
14th CoC meeting held…
State Bank of India, a financial creditor of Unimark Remedies Ltd. (the corporate debtor), filed an application seeking an order to declare the decision of the Committee of Creditors (CoC) in its 14th meeting held on 26.12.2018 as invalid. The CoC had decided to distribute an additional Rs. 10 crores offered by the Successful Resolution Applicant amongst the Financial Creditors based on the charge on assets of the Corporate Debtor. SBI argued that this distribution was discriminatory and lacked legal sanctity. SBI sought a direction to the CoC to distribute the amount on a pro rata basis to all Financial Creditors.
The Corporate Insolvency Resolution Process (CIRP) of Unimark Remedies Ltd. was initiated based on an application filed by ICICI Bank. Amit Gupta was appointed as the Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors (CoC), in which State Bank of India held a 9.37% voting share. During a CoC meeting on 26.12.2018, the Resolution Applicant improved the resolution amount by Rs. 10 crores. The Process Advisor (PWC) proposed distributing this additional amount among Financial Creditors who were negatively affected by the distribution of Rs. 111 crores, the originally proposed plan amount, based on their voting share. The additional Rs. 10 crores were to be distributed only among nine Financial Creditors, not all. State Bank of India
…CIRP of Unimark…
14th CoC meeting held…