The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Educomp Solutions Limited., has approved the Resolution Plan submitted by Ebix Singapore Pte. Ltd. for Educomp Solutions Limited. The Resolution Plan is valued at Rs. 325 Crores,...
The National Company Law Tribunal (“NCLT”), New Delhi Bench, comprising of Shri Ashok Kumar Bhardwaj (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Educomp Solutions Limited., has approved the Resolution Plan submitted by Ebix Singapore Pte. Ltd. for Educomp Solutions Limited. The Resolution Plan is valued at Rs. 325 Crores, while the total admitted claims of the Corporate Debtor amounts to Rs. 3,008.3 Crores.
Background Facts
Educomp Solutions Limited (“Corporate Debtor”) is one of India’s oldest education technology companies with its operations in India, USA and Singapore. The Corporate Debtor offers smart class products and ICT solutions to schools; has a network of pre-schools & schools; provides internet based learning and coaching classes for entrance exams, employment linked vocational courses and placement assistance. The brands related to the Corporate Debtor are Educomp Smart Class, The Millenium School, Raffles Millenium International, Vidyamandir classes et al.
On 30.05.2017, the NCLT admitted the Corporate Debtor into Corporate Insolvency Resolution Process (“CIRP”).
Ebix Singapore Pte. Ltd. (“Successful Resolution Applicant/SRA”) submitted a Resolution Plan for the Corporate Debtor, which was approved by the Committee of Creditors (“CoC”) with a majority voting share of 75.35%. Accordingly, the Resolution Professional filed an application under Section 30(6) of IBC before the NCLT, seeking approval of the Resolution Plan.
Outlay Of The Resolution Plan
The claims submitted by the Corporate Debtor’s creditors were admitted by the Resolution Professional to the extent of Rs. 3,008.3 Crores. The Resolution Plan of SRA is valued at Rs. 325 Crores, excluding the CIRP Cost.
The resolution plan proposes to pay the Financial Creditors (Secured and Unsecured) an amount of Rs. 314 Crores against an admitted claim of Rs. 3,003 Crores. The Operational Creditors are to be paid Rs. 0.5 Crores against their admitted claim of Rs. 1.06 Crores. The admitted claims of Employees and Government have been paid in full.
NCLT Verdict
The Bench has approved the Resolution Plan of Ebix Singapore Pte. Ltd. for the Corporate Debtor.
Case Title: Educomp Solutions Limited
Case No.: Company Petition No. (IB)-101/(PB)/2017
Counsel for Applicant: Sr. Adv. Arvind Nayyar, Adv. Aditya Swarup, Adv. Akshay Joshi, Adv. Shubham Pandey, Adv. Mehaq Rao in IA. No. 4845/2023, Adv. Rajat Sehjal, Adv. Mehaq Rao for SRA.
Counsel for Respondents: Sr. Adv. Neeraj Malhotra, Adv. Abhishek Sharma, Adv. Gaurav Arora, Adv. Kritya Sinha, Adv. Nimish Kumar, Adv. Himanshu Kohli on behalf of R-1 (RP), Adv. Siddhant Kant, Adv. Moulshree, Adv. Gayatri, Adv. Ankur Mittal and Adv. Bhaskar