Committee of Creditors (CoC) of debt-laden Lanco Infratech Limited has rejected the revised resolution plan of Tamil Nadu-based Thriveni Earth Movers Limited (TEPL).
The committee has examined the revised plan after the adjudicating authority, the Hyderabad bench of National Company Law Tribunal (NCLT), directed the CoC to take a view on the modified plan while extending the time of resolution period by 16 days to facilitate for the same on July 13.
It may be recalled that the CoC had refused to examine this revised plan submitted on May 3, a day before the expiry of 270-day resolution period, stating that the time was not sufficient to look at the proposal.
The issue was referred back to the NCLT by the resolution professional (RP) thereafter.
“Counsel for RP reported that the CoC meeting was held and CoC had not approved the revised resolution plan which was again placed before CoC,” the bench said in its orders delivered on Friday. The extended resolution period comes to a close on Sunday.
However, this may not mean the end of the road for a resolution in Lanco holding company’s insolvency case as the adjudicating authority had already agreed to examine Vijayawada-based Power Mech Projects Limited’s plea that it be allowed to submit a resolution plan for the company.
In the previous hearing, the counsel for Power Mech Projects requested the bench to reopen the resolution process so that it would be able to submit its resolution proposal.
According to Power Mech’s interim application, the imposition of restrictions on people holding NPAs from participating in the bids in November last year and introducing a three-year relaxation from this clause later in June this year provides a ground to seek an opportunity to file a resolution application at this stage. The company sources say that big companies like Vedanta had stayed away from participating in Lanco holding company’s resolution process due to the earlier restrictions.
Judge Ratakonda Murali today posted the hearing in Power Mech’s interim application to August 14.
Source: July 27, 2018, Business Standards