New Delhi: Appellate tribunal NCLAT has rejected SBI's arguments opposing the liquidation value of ITPCL offered by the debt-laden company's lead banker PN and said the country's largest lender is not entitled to liquidation value of IL&FS group's thermal Power cannot "end" the company's debt restructuring process.
The National Company Law Appellate Tribunal (NCLAT) has rejected all three applications filed by SBI and said it did not find any error in fixing the liquidation price of IL&FS Tamil Nadu Power Company Lt (ITPCL) as on 30.09.2018. ".
The appellate tribunal observed that as per the RBI circular, an inter-credito agreement has been entered into between the lenders.
Additionally, more than 90 per cent by value and 75 per cent by number of lenders have already approved the ITPCL restructuring plan.
The lenders of ITPCL have "already taken the decision to approve the restructuring plan with the requisite majority, SBI, which is one of the lenders, cannot be allowed to deviate from the terms of the ITPCL restructuring plan".NCLAT, in its order passed earlier this month, said, "...as per the decision taken by the majority as stipulated in clause 10 of the RB circular, the restructuring plan and the liquidation value arrived at therein is binding on the applicant (SBI)."
The RBI circular said that an inter-creditor agreement has been entered into between the parties, according to which any decision agreed by the lenders with 75 per cent of the value of the total outstanding credit facilities and 60 per cent of the lenders will be binding on all. Lender.
ITPCL is an SPV (Special Purpose Vehicle) incorporated by IL&FS to set up a 3,180 MW thermal power plant in Cuddalore district of Tamil Nadu. It currently has an operational capacity of 1,200 MW (2x600 MW). The project is being implemented in phases, the second phase will have 3x660 MW.State Bank of India (SBI), which holds a minority share of around Rs 9,000 crore of loans being restructured, had opposed the liquidation value arrived at by PNB, saying it was based on October 15, whereas, it should be Was Needed. Calculated up to March 31, 2023.
The liquidation value provided by PNB was "five years old" and has no use for taking commercial decisions on implementation of the restructuring plan and is "not even in accordance with law", SBI had submitted.
SBI had requested NCLAT to direct PNB and ITPCL to calculate and provide the liquidation value as on the date of execution of the master restructuring agreement and to stay further distribution of funds and payment as per the approved restructuring plan.
However, SBI's plea was rejected by a two-member NCLAT bench, which said: "The liquidation value as on 30.09.2018 is as per the order dated 12.03.2020, where the Tribunal has accepted 15.10.2018 as the cut-off." Have done, we do not find any error in fixing the liquidation price on 30.09.2018.,
PNB has appointed two firms and both have submitted two separate valuations of Rs 4,580.03 crore and Rs 6,188.66 crore, following which it has appointed a third valuer as per rules and regulations.
“The report of the valuers was received by the lead bank (PNB) and thereafter due to difference in valuation by the valuers, a third valuer was appointed and the entire process was noted and discussed in the meeting of the joint lenders. There is no dispute that the liquidation value has been communicated to the applicant as per the valuers' report submitted by Lead Bain," said the NCLAT order passed earlier this month.
During the proceedings, counsel for PNB and ITPCL had submitted that based on the liquidation value, if SBI makes its stand clear, SBI's share would be Rs 373.97 crore. SBI may still provide its 'consent' or 'dissent' to the GE eligibility as per the terms of the ITPCL restructuring plan.SBI's claims worth Rs 555.57 crore were accepted by the Claims Management Consultant.
ITPCL is classified as an "Amber" company. As per IL&FS's roadmap, its group companies have been classified into three categories – green, ambe and red – based on their respective financial position.
The green category includes companies that continue to meet their payment obligations.
IL&FS has a total of 302 units of which 169 are domestic and the remaining 133 are foreign.It had a debt burden of Rs 94,000 crore.
The National Company Law Appellate Tribunal (NCLAT) has rejected all three applications filed by SBI and said it did not find any error in fixing the liquidation price of IL&FS Tamil Nadu Power Company Lt (ITPCL) as on 30.09.2018. ".
The appellate tribunal observed that as per the RBI circular, an inter-credito agreement has been entered into between the lenders.
Additionally, more than 90 per cent by value and 75 per cent by number of lenders have already approved the ITPCL restructuring plan.
The lenders of ITPCL have "already taken the decision to approve the restructuring plan with the requisite majority, SBI, which is one of the lenders, cannot be allowed to deviate from the terms of the ITPCL restructuring plan".NCLAT, in its order passed earlier this month, said, "...as per the decision taken by the majority as stipulated in clause 10 of the RB circular, the restructuring plan and the liquidation value arrived at therein is binding on the applicant (SBI)."
The RBI circular said that an inter-creditor agreement has been entered into between the parties, according to which any decision agreed by the lenders with 75 per cent of the value of the total outstanding credit facilities and 60 per cent of the lenders will be binding on all. Lender.
ITPCL is an SPV (Special Purpose Vehicle) incorporated by IL&FS to set up a 3,180 MW thermal power plant in Cuddalore district of Tamil Nadu. It currently has an operational capacity of 1,200 MW (2x600 MW). The project is being implemented in phases, the second phase will have 3x660 MW.State Bank of India (SBI), which holds a minority share of around Rs 9,000 crore of loans being restructured, had opposed the liquidation value arrived at by PNB, saying it was based on October 15, whereas, it should be Was Needed. Calculated up to March 31, 2023.
The liquidation value provided by PNB was "five years old" and has no use for taking commercial decisions on implementation of the restructuring plan and is "not even in accordance with law", SBI had submitted.
SBI had requested NCLAT to direct PNB and ITPCL to calculate and provide the liquidation value as on the date of execution of the master restructuring agreement and to stay further distribution of funds and payment as per the approved restructuring plan.
However, SBI's plea was rejected by a two-member NCLAT bench, which said: "The liquidation value as on 30.09.2018 is as per the order dated 12.03.2020, where the Tribunal has accepted 15.10.2018 as the cut-off." Have done, we do not find any error in fixing the liquidation price on 30.09.2018.,
PNB has appointed two firms and both have submitted two separate valuations of Rs 4,580.03 crore and Rs 6,188.66 crore, following which it has appointed a third valuer as per rules and regulations.
“The report of the valuers was received by the lead bank (PNB) and thereafter due to difference in valuation by the valuers, a third valuer was appointed and the entire process was noted and discussed in the meeting of the joint lenders. There is no dispute that the liquidation value has been communicated to the applicant as per the valuers' report submitted by Lead Bain," said the NCLAT order passed earlier this month.
During the proceedings, counsel for PNB and ITPCL had submitted that based on the liquidation value, if SBI makes its stand clear, SBI's share would be Rs 373.97 crore. SBI may still provide its 'consent' or 'dissent' to the GE eligibility as per the terms of the ITPCL restructuring plan.SBI's claims worth Rs 555.57 crore were accepted by the Claims Management Consultant.
ITPCL is classified as an "Amber" company. As per IL&FS's roadmap, its group companies have been classified into three categories – green, ambe and red – based on their respective financial position.
The green category includes companies that continue to meet their payment obligations.
IL&FS has a total of 302 units of which 169 are domestic and the remaining 133 are foreign.It had a debt burden of Rs 94,000 crore.
