Our CIRP / Liquidation Cases

Lanco Solar Energy Private Limited is into EPC / O&M business of solar plants. It is also the holding company for solar power assets of the Lanco Group. There are numerous challenges to manage the business as a going concern due to manpower-based business.

The CIRP was initiated by Andhra Bank. Total claims of Rs. 514 crores of financial creditors were admitted. COC was constituted with 11 banks and financial institutions. CA Parveen Bansal was appointed as IRP and was subsequently confirmed as RP. 

As a result of aggressive marketing by Mr.Bansal and team, Two Potential Resolution Applicants, entered into a fierce competition, which resulted in closing the Resolution Plan amount, which was 1.85 times of the Liquidation Value. Different levels of protection were granted by the resolution applicants in respect of bank guarantees, which are yet to be expired. COC has already approved highest value resolution plan. Approved resolution plan has been submitted to the Hon'ble Adjudicating Authority for their approval 

Shri Lakshmi Cotsyn Limited: Shri Lakshmi Cotsyn Limited with six different Textile Units got under CIRP as a result of the account turning NPA. Mr.Rohit Sehgal was appointed as IRP and then confirmed as RP by a COC comprising 21 different Banks and Financial Institutions, with Total Claim beingRs.7276 Cr. Two Units of the Company were Operational at the time of initiation of CIRP, with almost 3000 workers and employees working. As RP, Mr.Sehgal had put in place a tight management information and fiduciary control structure to ensure the running of the units without financial leakages. Also, deftly handled a difficult workmen agitation and strike while ensuring that the agitation remained peaceful. Liaised with the local administration to safeguard the assets of the corporate debtor. Liaised with India’s top textiles majors (M/s Welspun, M/s Himmatsingka and M/s Trident) as well as with top Stressed Asset Fund (M/s Blackstone funded IARC). However, no Resolution Plan was received.

As Liquidator, despite tough Covid-19 led situation, Mr.Sehgal has already achieved a Total Sale Value of Rs.204 Cr. Noida Unit sold in E-Auction (18 bidders) at a final bid value which was 92% above the Reserve Price 

Lanco Thermal Power Limited was the owner of 10MW hydro power plant and was the holding company for thermal power assets of the Lanco Group. 

CIRP was initiated by Andhra Bank. Total claims of Rs. 33,331 crores of financial creditors were admitted. COC was constituted with 21 banks and financial institutions. CA Parveen Bansal was appointed as IRP and was subsequently confirmed as RP. Challenges to manage the business as a going concern especially during COVID period were handled smoothly and efficiently by Mr.Bansal.

There were two resolution applicants, who were interested in different set of assets but not for the company as a whole. They were encouraged to join hands and submit a composite resolution plan for the whole of the Corporate Debtor, with an accompanying scheme of demerger. The Composite Resolution Plan value was more than 2.5 times of the sum of individual unit based Resolution Offer. The Resolution Plan has been approved by the Hon'ble Adjudicating Authority and is under implementation.

Shree Shyam Pulp and Board Mills Limited: Shree Shyam Pulp and Board Mills Ltd was into Paper manufacturing and had a Large Paper Unit in Kahsipur, Uttarakhand.  Mr.Rohit Sehgal was appointed as IPR, later confirmed as RP by a COC comprising 11 Large Public and Private Sector Banks with the Total Claim amount being Rs.1620 Cr. As the unit had been in closed condition for more than 4 years prior to the start of CIRP and with the account getting declared as Fraud by the consortium of banks, despite best efforts, no Resolution Plan was received and the COC decided to liquidate the company. As Liquidator, Mr.Sehgal was able to e-auction the Plant and Machinery, with five active bidders participating and taking up the final bid price which was 20% more than the Reserve Price (From Rs.33.34 Cr. Reserve Price, the Final Bid Price was Rs.39.94Cr.). Land Building was also sold in e-auction and the proceeds have been distributed to the creditors. As liquidator, Mr.Sehgal has also deftly handled the EPFO claim matter with the EPFO department.

Amit Spinning Industries Limited was yarn manufacturing unit in the textile industry based at Kohlapur – Maharashtra. The unit was commercially unviable due to high cost of manpower. The unit was lying closed for about 5 years.

CIRP was initiated under section 10 of IBC Code. COC was constituted with Axis Bank and JM Financial ARC as members. CA Parveen Bansal was appointed as IRP and was subsequently confirmed as RP. 

There was a fierce competition among three resolution applicants, which ended the resolution of the Corporate Debtor with 1.12 times of liquidation value. The resolution plan has already been approved by Adjudicating Authority. Amount due to about 250 workers have been settled. Legal cases filed by workers have been withdrawn. Resolution plan has been successfully implemented.

Surya Treasure Island Pvt Ltd, having a running Mall at Bhilai -Chhattisgarh, having buildup area more than 5.00 lakh sqf, with more than 200 employees working , some part of unit/Shop sold but no registry have been made .  Mr. Jagdish kumar appointed as RP . the CoC comprising  Banks with total claim being Rs. 153 Crore.  RP managed the operation of the CD and maintained fiduciary control structure.

The RP achieved the resolution plan with attractive Resolution Amount at 1.5 times of the Liquidation Value and having provisions for protection of active Bank guarantees. The Plan has been approved by the Hon'ble NCLT -Mumbai . 

 Santosh Overseas Limited:Santosh Overseas Ltd., was a Basmati Rice Processing and Peanut Processing company with bulk of it’s finished Produce getting exported. The Total Claim Amount was Rs.675 Cr. with Seven Large Public and Private Sector Banks being part of the COC. The unit of the company were in closed condition much prior to the initiation of CIRP. The COC decided to Liquidate the company. Mr.Rohit Sehgal who was appointed as IRP, later confirmed as RP, was appointed as the Liquidator. As Liquidator, he was able to successfully e-auction the Fixed and Current Assets of the company even during the difficult period of Covid-19 pandemic and distributed the proceeds to the stakeholders 

HBN Dairies and Allied Limited: HBN Dairies and Allied Limited was running an unauthorized Collective Investment Scheme (Ponzi Scheme) wherein it collected over Rs.1100 Cr. from over twenty lakh investors spread across the country. SEBI took action against the Company and attached almost all of it’s properties. Later, the CIRP of the company started and Mr. Rohit Sehgal was appointed as the IRP and confirmed as RP. Mr. Sehgal petitioned NCLT and got all the properties attached by SEBI, de-attached. However, SEBI appealed against the same in the Hon’ble Supreme Court of India and the matter is still pending at the Apex Court. Meanwhile NCLT ordered the liquidation of the company and Mr. Sehgal as Liquidator has E-Auctioned one Property of the corporate debtor with the final bid price being 35% more than the Liquidation Value..

Madhya Bharat Phosphate Pvt Ltd having manufacturing unit of Phosphate, Two Units were closed since 3 years before the CIRP initiation .Mr. Jagdish Kumar appointed as RP , the coc comprising Banks with Total claim being Rs. 44 Crores .                                                                                                                                                                 The RP achived the resolution plan with attractive Resolution Amount at 2.00 times of the liquidation value. The Plan has been approved by Hon'ble NCLT - Indore . The Implementation of Resolution Plan has been completed.

Tehri Iron and Steel Limited is in the iron business and has a furnace and rolling mill located at Muzaffarnagar. 

CIRP was initiated by operational creditor. Punjab National Bank was the sole member of Committee of Creditors. CA Parveen Bansal was appointed as IRP and was subsequently confirmed as RP. 

The resolution plan was submitted with resolution amount of 1.13 times of liquidation value. The resolution plan has already been approved by Adjudicating Authority. 

R.S.Ajit Singh and Company (Automotives) Pvt. Ltd: R.S.Ajit Singh and Company (Automotives) Pvt Ltd. was an automobile dealership of Volvo Eicher commercial vehicles Ltd.(VECV). As the manufacturing company (VECV) cancelled the dealership agreement, it resulted in the CIRP of the company. As RP, Mr.Rohit Sehgal sold back all the inventory of vehicles with the dealership and when the company got liquidated, the proceeds were distributed to the lenders.

Ajit Automotive Services Pvt. Ltd: Ajit Automotive Services Pvt. Ltd was also an automobile dealership of Volvo Eicher commercial vehicles Ltd.(VECV) and a sister concern of R.SAjit Singh and Company (Automotives) Pvt. Ltd. As the manufacturing company (VECV) cancelled the dealership agreement, it resulted in the CIRP of the company. As RP, Mr.Rohit Sehgal sold back all the inventory of vehicles with the dealership and when the company got liquidated, the proceeds were distributed to the lenders..