Mumbai: Lenders to Jyoti Structures Ltd will meet next week to put the only resolution bid received for the debt-laden company to vote, said two people close to the development. The decision of the committee of creditors (CoC) will be crucial for Jyoti Structures as the 270-days window to resolve the account ends on 31 March.
“Only one bid has been received which has already been evaluated by creditors. In order to pass the resolution plan, voting will be conducted on Monday," said one of the two people cited above, requesting anonymity. The voting outcome will be declared on Tuesday, he added.
The resolution professional for Jyoti Structures had invited bids from resolution applicants between 12 September and 29 December. The firm had received a single bid from a group of high net worth individuals led by Sharad Sanghi, managing director and chief executive at Netmagic Solutions. Sanghi is also backed by others, including Manish Kejriwal, managing partner at Kedaara Capital Advisors LLP and Madhu Kela, who was previously the chief investment strategist at Reliance Capital Ltd. Garg declined to comment citing confidentiality.
To be sure, of the 12 debt-laden firms referred by the Reserve Bank of India on 13 June 2017 for resolution under the insolvency and bankruptcy code (IBC), Jyoti Structures was the first account to be admitted by the National Company Law Tribunal for resolution. The tribunal admitted the insolvency petition against the firm on 4 July 2017. The Mumbai-based engineering, procurement and construction firm has a debt outstanding of around ₹ 7,000 crore. State Bank of India is the lead bank.
The second person cited above said that the chances of acceptance of resolution plan are high as liquidation would entail a higher haircut for banks. Details of the resolution plan and who will run the management if the bid was accepted could not be ascertained.
In case, the creditors decide to accept the bid, the resolution plan submitted will have to be cleared by the NCLT before 31 March, the deadline to implement the resolution plan.
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