The National Company Law Tribunal (“NCLT”), Delhi Bench, comprising of Justice Ramalingam Sudhakar (Retd.) (Judicial Member) and Avinash Kumar Srivastava (Technical Member) has approved the Resolution Plan submitted by ENN TEE International Limited through its Promotor. Background Facts ENN TEE International Limited (“Corporate Debtor”) is a registered MSME engaged in...
The National Company Law Tribunal (“NCLT”), Delhi Bench, comprising of Justice Ramalingam Sudhakar (Retd.) (Judicial Member) and Avinash Kumar Srivastava (Technical Member) has approved the Resolution Plan submitted by ENN TEE International Limited through its Promotor.
Background Facts
ENN TEE International Limited (“Corporate Debtor”) is a registered MSME engaged in the business of manufacturing and supplying Polyester and Polypropylene dope-dyed yarn and narrow fabric. The products of Corporate Debtor are sold under the brand name “Minklene” and the unit is partially operational.
On 10.10.2022, the NCLT initiated a Pre-Packed Insolvency Resolution Process (“PPIRP”) against the Corporate Debtor. The Company Petition CP (IBPP) No.01(PB) 2022 was filed by the Corporate Debtor under Section 54C of the Insolvency and Bankruptcy Code 2016 under which an ‘Application to initiate a PRIRP’ is filed.
Subsequently, Ms Ritu Rastogi (IBBI Reg No. IBBI/IP-P00204/2017-18/10393) was appointed as the Resolution Professional.
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.15.94 Crores. The Resolution Plan of SRA is valued at Rs.17.19 Crores.
The average fair value of the Corporate Debtor is Rs. 14.57 Crores and the average Liquidation value is Rs. 10.20 Crores.
The resolution plan proposes to pay the Financial Creditors in full against their claims of 11.96 Crores by combining a Term Loan of Rs. 5.81 Crores and an ECLGS Loan under Covid-related Govt. Scheme of Rs. 2.5 Crores and a Cash Credit Loan of Rs. 3.65 Crores.
The Government Dues of Rs 57 lakhs will be paid in full. The Operational Creditors (Employees and workmen) will be paid their admitted claims in full amounting to Rs. 8.74 lakhs. The Operational Creditors other than workmen and employees will also be paid full claims amounting to 3.2 Crores.
NCLT Verdict
The Bench has approved the Resolution Plan submitted by ENN TEE International Limited through its Promotor for the Corporate Debtor.
Case Title: ENN TEE International Limited vs Ritu Rastogi, Resolution Professional of ENN TEE International Limited.
Case No.: CP (IBPP) NO.01(PB)/2022
Counsel for Successful Resolution Applicant: Ms. Prachi Johri, Advocate along with Mr. Mukesh Kumar, AGM, SBI
Counsel for Resolution Professional: Eshna Kumar, Ms Prachi Bhatia, Mr Shubham Jaiswal, Ritu Rastogi, Advs. For RP.