The National Company Law Tribunal (NCLT) approved a resolution plan for Lanco Solar Energy submitted by the consortium of Jitender Vir Singh (JVS) and Derit Infrastructure, almost four years after the company was ordered to undergo the corporate insolvency resolution process (CIRP).
Lanco Solar’s lenders earlier approved the resolution plan submitted by the JVS-Derit Infra consortium with a 95.62 percent vote share. The consortium has acquired and turned around 30 megawatts of stressed solar energy projects and a steel structure plant over the past five years.
The Jindal Holidays-Sun N Wind Infra Energy consortium and Manikaran Power were the unsuccessful resolution applicants.
Lanco Solar was ordered to undergo insolvency proceedings following an application filed by lender Andhra Bank in June 2019. However, the process of finalising the successful resolution applicant was delayed following technical issues with unsolicited bids wherein the expressions of interest were rejected.
The committee of creditors (CoC), which met 27 times in all over the past four years, continued multiple rounds of negotiations with resolution applicants seeking to upwardly revise resolution amounts. The CoC sought fresh bids from prospective resolution applicants after rejecting the expressions of interest.
Some applicants contested the decisions of the lenders in legal forums, while others revised their bids higher, all resulting in delays and extensions.
The NCLT Hyderabad bench comprising judicial member Nandula Venkata Ramakrishna Badarinath and technical member Satya Ranjan Prasad approved the JVS-Derit Infra consortium’s resolution plan offering Rs 83.24 crore in an order dated April 24. This is against the average fair market value of Rs 99.47 crore and a liquidation value of Rs 47.31 crore assessed by registered valuers.
The JVS-Derit Infra consortium proposed to infuse adequate capital to restore operations at all plants of Lanco Solar Energy, owned directly and through subsidiaries, and supply power to consumers under long-term agreements. It agreed to extend services to plants operated and maintained for external clients such as NTPC and Parliament House and rooftop projects in some states.
The consortium proposed to infuse capital and refurbish equipment and systems within six months of the transfer of the corporate debtor’s shares.
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