BackOperational creditors of Bharati Defence seek rejection of resolution plan
Operational creditors and former promoters of Bharati Defence say the resolution plan should be rejected
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Mumbai: The operational creditors and former promoters of Bharati Defence and Infrastructure are seeking the dedicated bankruptcy court’s intervention to reject the resolution plan submitted by the resolution professional.
The operational creditors and former promoters say the plan should be rejected as they were neither kept in the loop at the time of the Committee of Creditors (CoC) meeting and nor they have received the copy of the resolution plan.
On Friday, the division bench of the National Company Law Tribunal (NCLT) presided by B.S.V. Prakash Kumar and Ravikumar Duraisamy had directed the resolution professional to file his reply in two weeks in a petition filed by workers seeking to clear their dues as well as operational creditors and promoters seeking the copy of resolution plan with the argument that they have been deliberately kept out of the process.
Mayur Khandeparkar, an advocate representing the promoter director had argued that neither have they received a copy of the resolution plan not has the company allowed them to be part of the CoC meetings. “As per law, we are entitled to be part of the meeting, though we can’t vote, but the creditors have not allowed us to be part of it," he elaborated.
“Edelweiss ARC had acquired 80% of the loan from the banks and later, under the CoC, they hold 83% voting rights and interestingly they are the resolution applicant (bidder) to acquire the company," argued counsel Nimay Dave who was representing the operational creditors of the company. “Here, the creditor has accepted the resolution plan submitted by itself as it has a brute majority. They are not giving us a copy of the resolution plan and are not even giving us clarity about what happens to our dues."
The company faces claims of about Rs8,500 crore from financial and operational creditors.
However, advocate Shyam Kapadia, who was appearing for the resolution professional, argued that the resolution plan was approved by 95% of lenders, which is far more than the Edelweiss ARC’s voting percentage and also that they are of the view that if the plan copy is provided some lender may try to derail the process.
Edelweiss ARC has referred the company to a bankruptcy court. Bharati Defence, earlier known as Bharati Shipyard, was renamed after Edelweiss ARC acquired the majority of the loans from banks.
On 8 March 2018, the resolution professional had informed the exchange that the Resolution Plan has been approved by the majority of CoC members.
Email queries to Edelweiss and Dhinal Shah, the resolution professional of the company, remained unanswered till the time of going to press.
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