Company UpdateApproval of Resolution plan by Tribunal
Ambition Mica Ltd - 539223 - Corporate Insolvency Resolution Process (CIRP)-Approval of Resolution plan by Tribunal
Tribunal approval
- Resolution plan for Ambition Mica Limited was approved by the tribunal.
- Plan approval became effective immediately upon the approval order.
Plan features
- Successful resolution applicant was Devenkumar Rameshbhai Patel.
- He proposed 1,00,000 equity shares to secured financial creditors.
- Public shareholders were to receive 2,55,000 equity shares.
- Fractional shares were to be reduced to zero without cash compensation.
- Board was to be reconstituted with nominees of the successful applicant.
- Monitoring committee comprised the RP, secured creditor representative, and SRA representative.
Creditor treatment
- Secured financial creditors were to receive Rs 5.80 crore from company assets.
- An additional Rs 8 crore was linked to guarantor-owned mortgaged land.
- Unsecured financial creditors were to receive Rs 5 lakh.
- Operational creditors were to receive Rs 5.54 lakh, excluding statutory dues.
- Statutory dues were to receive Rs 9.45 lakh.
- Employees and workmen had no admitted payout under the plan.
Capital and listing
- The plan contemplated capital restructuring and share issuance to creditors and public shareholders.
- Listing continuation on BSE was to be pursued after restructuring.
- Suspension of shares was to be withdrawn after compliance steps.
Financial metrics
- Liquidation value was Rs 5.66 crore.
- Fair value was Rs 7.99 crore.
- Total admitted claims were about Rs 44.01 crore.
- Total plan payout was Rs 6 crore.
Implementation status
- CIRP cost of Rs 50 lakh had been paid initially.
- The SRA later defaulted on scheduled instalments under the approved plan.
- Monitoring committee recommended breach action and re-initiation of CIRP.
- The RP filed proceedings seeking cancellation and fresh resolution process.
Governance and obligations
- The SRA was required to furnish a performance bank guarantee of Rs 1.45 crore.
- The RP was to act as monitoring committee chairman, paid by the SRA.
- The SRA was to obtain required approvals within one year.
- Government and statutory authorities were to consider relief requests separately.