NCLT Kolkata Approves Resolution Plan For McNally Bharat Engineering Company Ltd

The National Company Law Tribunal (“NCLT”), Kolkata Bench, comprising of Shri Rohit Kapoor (Judicial Member) and Shri Balraj Joshi (Technical Member), has approved the Resolution Plan submitted by BTL EPC Limited (part of Shrachi Group) for McNally Bharat Engineering Company Limited. The Resolution Plan is valued at Rs. 441.11 Crores, while the total admitted claims of the Corporate Debtor amounts to Rs. 5,015.28 Crores. Background Facts McNally Bharat Engineering Company Limited (“Corporate Debtor/”) is engaged in Engineering, Procurement and Construction business (“EPC”). The Corporate Debtor provides turnkey solutions in the areas of Power, Steel, Coal & Mining, Ports, Aluminum, Material Handling, Mineral Processing, Cement, Water, Oil & Gas and Infrastructure sectors such as Buildings & Townships, High Rises, Roads, Metro, Rail etc. The Corporate Debtor is listed with the National Stock Exchange and Bombay Stock Exchange. On 29.04.2022, the NCLT admitted the Corporate Debtor into Corporate Insolvency Resolution Process (“CIRP”). BTL EPC Limited (“Successful Resolution Applicant/SRA”) is a part of the Shrachi group of companies which was founded by Late Mr. Sharwan Kumar Todi. The SRA is engaged in the business of EPC contracting, Bulk Material Handling in Metal/ Coal/ Mineral Beneficiation Plants, providing turnkey solutions to Defence, Coal, Power, Mining, Steel, and Cement industries etc. The SRA and Nalwa Steel & Power Limited had submitted Resolution Plans for the Corporate Debtor, which was approved by the Committee of Creditors (“CoC”) with 90.06% voting share which led to a tie. As per the tie breaker formula, the resolution plan with the higher NPV would be selected. The resolution plan of SRA was selected for having higher NPV. Accordingly, the Resolution Professional filed an application under Section 30(6) of IBC before the NCLT, seeking approval of the SRA's 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. 5,015.28 Crores. The Resolution Plan of SRA is valued at Rs. 441.11 Crores, excluding the CIRP Cost. The resolution plan proposes to pay the Secured Financial Creditors an amount of Rs. 428.73 Crores against an admitted claim of Rs. 3514.6 Crores. The Unsecured Financial Creditors are to be paid Rs. 3.46 Crores against an admitted claim of Rs. 1,282.5 Crores. The Government dues have been allocated Rs. 3.50 Crores as against an admitted claim of Rs. 217 Crores. The Employees and Workmen have been paid Rs. 0.01 Crore as against their admitted claim of Rs. 0.03 Crore. The other Operational Creditors have been paid Rs. 0.10 Crores against their admitted claim of Rs. 1.01 Crores. The Shareholders & Other Stakeholders are to be paid Rs. 0.21 Crores. NCLT Verdict The Bench has approved the Resolution Plan of BTL EPC Limited for the Corporate Debtor. Case Title: Bank of India v McNally Bharat Engineering Company Limited Case No.: I.A. (IB) No. 1391/KB/2023 in CP (IB) No. 891/KB/2020 Click Here To Read/Download Order

NCLT Kolkata Approves Resolution Plan For McNally Bharat Engineering Company Ltd

Pallavi Mishra

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