City-based Bafna Pharmaceuticals today announced that Chennai bench of National Company Law Tribunal (NCLT) has approved the resolution plan submitted by the company under corporate insolvency resolution process.
In an exchange filing, the company said the Chenai bench of the tribunal, by its order dated February 1, 2019, has approved the resolution plan submitted by resolution applicant Bafna Mahaveer Chand.
The resolution plan approved by Committee of Creditors (CoC) on January 4, 2019 was submitted to the NCLT Chennai on January 17 by Resolution Professional (RP) Radhakrishnan Dharmarajan, the company’s statement said.
In July 2018, NCLT admitted the creditor Aries’ application and initiated corporate insolvency resolution process against debtor, Bafna under Insolvency and Bankruptcy Code 2016.
Subsequently, the CoCs in its meeting on September 27 and November 30, 2018 decided to allow the corporate debtor to submit the resolution plan and deferred the issuance of Expression of Interest (EOI) considering that it is an Micro, Small and Medium Enterprise (MSME).
Upon request from Bafna, the CoCs in its meeting dated December 20, 2018 extended the deadline to submit the resolution plan till January 4, 2019.
The resolution plan submitted by Bafna at the sixth meeting of CoCs held on January 4 was approved with 74.84 per cent financial creditors voting in favour of the resolution plan.
The plan provides resolution for all the financial creditors of ₹34.46 crore against a total claim of ₹49.23 crore.
The resolution plan also provides that 70 per cent of the admitted claims of all the financial creditors shall be paid within three months from the ‘approval date’ as full and final settlement of the dues and personal guarantees.
The approved resolution plan shall become effective from February 1.
Source: February 5, 2019, Business Line