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NCLT Approves Tayo Rolls Resolution Plan Under Insolvency Code
Team Finance Saathi
18/Dec/2024
What's covered under the Article:
- NCLT Approval: The Kolkata Bench approves the Resolution Plan submitted for Tayo Rolls Limited by Jharkhand Bijli Vitran Nigam Limited.
- IBC Process Update: Details on the restructuring of share capital and insolvency proceedings under Section 31 of the Insolvency and Bankruptcy Code.
- Next Steps: Awaiting the official written order from NCLT; further updates will follow upon receipt.
In a significant development, the National Company Law Tribunal (NCLT), Kolkata Bench, has approved the Resolution Plan for Tayo Rolls Limited, a corporate debtor undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), 2016. This resolution marks an essential step in the company's restructuring process, aimed at reviving its operations and addressing its liabilities effectively.
The Resolution Plan was submitted by Jharkhand Bijli Vitran Nigam Limited, the Resolution Applicant, and facilitated by the Resolution Professional, Mr. Anish Agarwal (IP Registration No. IBBI/IPA-001/IP-P-01497/2018-2019/12256). It underwent rigorous scrutiny under the provisions of the IBC and was finally approved by the NCLT under Section 31, following its oral pronouncement on December 17, 2024.
Key Highlights of the Resolution Plan:
- Capital Restructuring: The plan includes a comprehensive restructuring and reduction of share capital to align with the company's revival strategy.
- Proposals for Revival: Additional restructuring proposals embedded in the plan aim to streamline operations and financial management for sustainable growth.
- Implementation Timeline: The plan will be implemented as per the directives laid down in the written order of the Hon’ble NCLT, which is currently awaited.
The company, a Tata Enterprise, has been undergoing the Corporate Insolvency Resolution Process (CIRP) since October 30, 2019, with its affairs managed by the Resolution Professional. This milestone approval is expected to provide a robust framework for its revival, bringing in operational efficiencies and financial stability.
Regulatory Compliance and Disclosure:
In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this update serves as a formal disclosure. The approval follows the framework outlined in SEBI Circulars NSE/CMU2021/27 and 20210709-9, ensuring transparency in the process.
The official written order from the Hon'ble NCLT is awaited, and a detailed summary of the resolution plan, along with the order copy, will be disclosed promptly upon receipt. Stakeholders are advised to stay tuned for further updates.
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