The Kolkata bench of the National Company Law Tribunal (NCLT) has authorized the resolution strategy submitted by New Delhi-based Om Logistics for acquiring bankrupt Transafe Services, a joint venture of state-run Balmer Lawrie & Co, beneath the Insolvency and Bankruptcy Code (IBC).
Om Logistics, the highest bidder (H1) for the duration of the corporate insolvency resolution procedure (CIRP) for Transafe Services (TSL), has proposed to spend Rs 49 crore, whereas the total admitted claim was about Rs 533 crore. Under this insolvency resolution procedure, secured monetary creditors will have to take a haircut of 87%.
The resolution strategy submitted by Om Logistics was, even so, authorized by one hundred% votes of the Committee of Creditors (CoC) of Kolkata-based TSL, a joint venture of Balmer Lawrie & Co (BL) and Balmer Lawrie — Van Leer (BLVL) with each and every holding 50% shares. The firm is specialised in the design and style and manufacture of containers and tanks. Western Carriers (India), which supplied Rs 47.65 crore, was declared the H2 bidder.
Notably, Syndicate Bank, merged into Canara Bank from April, 2020, had moved the NCLT against Transafe Services on the ground that the business had committed default in paying monetary debt of Rs 83.68 crore. Other monetary creditors are Axis Bank, HDFC Bank, Karur Vysya Bank and Bank of India, amongst other people. The NCLT, vide its order dated November 21, 2019, admitted the application for commencing the CIRP against Transafe Services. Anil Agarwal, companion in AAA Insolvency Professionals, was appointed as the Resolution Professional (RP) of Transafe Services.
As quite a few as seven providers had submitted EoIs for the insolvent business, and amongst these, 3 have lastly submitted resolution plans, informed sources told FE. The Kolkata bench of the NCLT authorized Om Logistics’s resolution strategy on April 9, 2021.
Transafe Services, a non-govt business, began its journey in 1990-91 with the company of leasing of numerous kinds of containers for road and rail transportation of goods. Later, it forayed into the company of specialty container manufacturing and logistics services. In 2018-2019, the business had a turnover of about Rs 24.95 crore, though it incurred a loss of `23.86 crore.
According to Balmer Lawrie’s annual report for the monetary year 2019-20, TSL was facing rough weathers considering the fact that 2009-10 and for the duration of the monetary year 2012-13, its accumulated losses surpassed its net worth and consequently in 2013, a suo-moto application for revival was created prior to erstwhile Board for Industrial & Financial Reconstruction (BIFR) beneath the repealed Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). Due to the emergence of the Insolvency and Bankruptcy Code, 2016 (IBC) the pending application prior to BIFR became inactive, considering the fact that December, 2016.