A group of investors led by Sharad Sanghi, chief executive officer at Netmagic Solutions, will submit a revised resolution plan for the debt-laden Jyoti Structures to the National Company Law Tribunal (NCLT). The National Company Law Appellate Tribunal (NCLAT) had given the NCLT two weeks to reconsider the resolution plan, according to an order dated 19 March 2019.
The decision for a revised plan comes after the NCLAT dismissed an order by the NCLT to liquidate Jyoti Structures Ltd.
The bankruptcy court had passed its liquidation order in July last year after rejecting Sanghi's plan, who along with a group of investors was the sole bidder for the engineering and construction company. But in August 2018, after a petition filed by over 800 employees of Jyoti Structures, the decision to liquidate the firm was rejected.
On Tuesday, Sanghi is said to have presented the plan again before the NCLT with a tweaked offer price.
He has offered to pay the same amount of Rs 3,965 crore that was presented in the previous resolution plan but in 12 years as against 15 years, as stated earlier.
However, one of the lenders and the sole first charge holder in the company, DBS Bank, has opposed the revival plan. The lender argued that it is biased against them and does not distinguish between the first and second charge holders.
Jyoti Structures owes DBS Bank Rs 53.77 crore.
Seeking a week’s time, the lender may challenge the NCLAT ruling in the Supreme Court.
The NCLT will continue hearing the case on March 27.
Jyoti Structures, provider of engineering, procurement and construction (EPC) services in the power transmission sector, owes lenders more than Rs 8,000 crore. It is one of the 12 large cases referred by the Reserve Bank of India for insolvency proceedings in its first list in 2017.