The dedicated bankruptcy court has directed Mauritius-based Royale Partners Investment Fund to pay Rs 420 crore to the lenders of the EPC Constructions India (formerly Essar Projects) and has also directed to issue the non-convertible debentures of Rs 480 crore as per the resolution plan approved by the lenders.
The Mumbai bench of the National Company Law Tribunal (NCLT) had directed on February 18 the successful bidder of EPC Constructions to pay the amount within a week of the passing of such order.
“Payment of the upfront amount of Rs.420 crore which has already become due consequent to 30 business days getting over from the date of approval of the Resolution Plan by NCLT,” said the tribunal led by the judicial member Suchitra Kanuparthi and a technical member Chandra Bhan Singh. “Deposit the balance performance guarantee of Rs.48 crore within 90 days of the approval of the Resolution Plan by NCLT,” the tribunal further ordered.
Last month, the monitoring agency of EPC Constructions India had approached the tribunal against the successful bidder for not depositing the required amount after agreeing to the same.
In November 2019, the Mumbai bench of the National Company Law Tribunal (NCLT) had approved a resolution plan submitted by Mauritius-based Royale Partners for EPC Constructions to revive the company that was previously known as Essar Projects India.
The foreign investor had offered to put in around Rs 900 crore to revive the company, which owed more than Rs 7,700 crore to its financial and operational creditors.
The Mauritius-based fund had argued that as per the resolution plan, the resolution professional was to handover all the records to it. “However, the resolution applicant (Royal Partners) mentions that it has not been done so by the RP in spite of their asking for the same,” argued the successful bidder as per the order, a copy of which was reviewed by ET.
While tribunal setting aside all the contentions of the Royal Partners observed that, “…Royale Partners Investment, is delaying the implementation of the plan by raising a frivolous issue which are incorrect and untenable…” observed the order, further adding that, “as per the Resolution plan within 30 business days from the date of approval of the Plan the Resolution Applicant has to bring the upfront payment which is Rs.420 crores in this instant case.”
Senior Counsel Pradeep Sancheti along with advocate Pulkit Sharma and Prateek Mishra of law firm L&L Partners were representing the monitoring committee in the case, while senior counsel Dinyar Madon and advocate Amir Arsiwala were representing Royal Partners Investment Fund in the case.
Source: The Economic Times, February 21, 2020