2018 (9) TMI 2028 - Tri - Insolvency and Bankruptcy

Approval of Resolution Plan - Section 31 (1) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT - The resolution plan submitted by the Resolution Applicant Ingen Capital which was recommended by the CoC pursuant to the meeting held on 04.06.2018 and voting concluded on 21.06.2018 stands approved - The Resolution professional in consultation with COC will ensure that the Resolution Plan complies with section 30(2)(e) of the IBC, 2016 especially regarding compliance with FDI norms and provisions of FEMA and the regulations made there under. The Resolution applicants are directed to adhere to the provisions of Section 53 of the IBC 2016 duly following the procedure for water fall in relation to the amounts brought in by the Resolution Applicants - Application disposed off.

Summary

Issues Involved:
1. Approval of the resolution plan submitted by Ingen Capital Group, LLC.
2. Implementation of the resolution plan.
3. Settlement or restructuring of claims.
4. Termination of the moratorium order.
5. Compliance with Section 30(2)(e) of the IBC, 2016.
6. Adherence to Section 53 of the IBC, 2016.
7. Forwarding records to the IBBI.

Issue-wise Detailed Analysis:

1. Approval of the Resolution Plan Submitted by Ingen Capital Group, LLC:
The Tribunal was petitioned to approve the resolution plan submitted by Ingen Capital Group, LLC for the Corporate Debtor, which had been approved by the Committee of Creditors (CoC) in its meeting on 4th June 2018 and through voting concluded on 21st June 2018, as per Section 31(1) of the Insolvency and Bankruptcy Code, 2016. The resolution plan was ultimately approved by 78.64% of the votes cast in favor of the resolution.

2. Implementation of the Resolution Plan:
The Tribunal was requested to approve the consummation of all steps contemplated for implementing the resolution plan. The resolution plan included terms for the settlement of admitted claims, sources of funds, payment of insolvency resolution process costs, payment to operational creditors, workmen and employee dues, payment to dissenting financial creditors, and management and control of the Corporate Debtor during the term of the resolution plan.

3. Settlement or Restructuring of Claims:
The resolution plan proposed an upfront payment of ?1000 Crores to secured financial creditors against verified claims of ?3,341.54 crores, along with 10% equity shares in the recapitalized company. It also provided ?10 Crores for insolvency resolution process costs, ?37 Crores for operational creditors against verified claims of ?88.52 crores, and ?13 Crores for workmen/employees dues. Payments to dissenting financial creditors and claims under litigation/dispute were also addressed.

4. Termination of the Moratorium Order:
Upon approval of the resolution plan, the Tribunal declared that the moratorium order passed under Section 14 of the Code would cease to have effect from the date of approval of the resolution plan.

5. Compliance with Section 30(2)(e) of the IBC, 2016:
The Resolution Professional, in consultation with the CoC, was directed to ensure that the resolution plan complies with Section 30(2)(e) of the IBC, 2016, especially regarding compliance with Foreign Direct Investment (FDI) norms and provisions of the Foreign Exchange Management Act (FEMA) and the regulations made thereunder.

6. Adherence to Section 53 of the IBC, 2016:
The Tribunal directed that the resolution applicants adhere to the provisions of Section 53 of the IBC, 2016, duly following the procedure for "waterfall" in relation to the amounts brought in by the resolution applicants.

7. Forwarding Records to the IBBI:
As per Section 31(3)(b), the resolution professional was directed to forward all records relating to the conduct of the corporate insolvency resolution process and the resolution plan to the Insolvency and Bankruptcy Board of India (IBBI) to be recorded in its database.

Conclusion:
The application MA/211/IB/2018 in CP/540AB/CB/2017 was disposed of with the above directions, approving the resolution plan submitted by Ingen Capital Group, LLC, and ensuring compliance with the relevant provisions of the IBC, 2016.