Vas Infrastructure Limited, a company under Corporate Insolvency Resolution Process (CIRP), has provided a regulatory update regarding the status of its insolvency proceedings. In a communication dated April 21, 2025, the company informed the Bombay Stock Exchange (BSE) that the Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench, has taken up the Resolution Plan submitted by Authum Investment & Infrastructure Limited for consideration.

This update was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlighting a key development in the ongoing insolvency case. The NCLT Mumbai (Court-II) listed IA No. 41 of 2025 for hearing for the first time on April 21, 2025.

Background of the Case

Vas Infrastructure Limited, incorporated in 1994 and listed on BSE (Scrip Code: 531574), has been undergoing CIRP under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC 2016). The resolution professional appointed in the case is Ashok Kumar Golechha, who holds IBBI Registration No. IBBI/IPA-002/IP-N000932/2019-20/12973, with a valid Authorisation for Assignment (AFA) up to December 31, 2025.

The company's insolvency proceedings were initiated due to financial distress and non-repayment of obligations to creditors. As part of the CIRP, multiple steps have been undertaken, including issuance of expressions of interest, shortlisting of resolution applicants, and finally, submission of resolution plans.

Authum Investment & Infrastructure Limited, a well-known financial services and investment firm, has submitted a resolution plan aimed at reviving the operations and repaying the liabilities of Vas Infrastructure. The plan includes a proposal for settlement of claims, restructuring of operations, and infusion of necessary funds to ensure business continuity and revival.

Importance of the NCLT Hearing

The NCLT hearing marks a significant stage in the insolvency process. Once the tribunal considers and approves a resolution plan, it becomes binding on all stakeholders, including financial creditors, operational creditors, employees, and the corporate debtor.

The approval of the resolution plan may potentially bring an end to the prolonged insolvency of Vas Infrastructure and pave the way for its revival. It could also ensure value maximization for stakeholders, prevent liquidation, and restore business operations.

As per standard practice under IBC, once a plan is approved by the Committee of Creditors (CoC), it is submitted to the NCLT for final approval. The consideration of this resolution plan on April 21, 2025, indicates that the proposal has already gone through the CoC’s scrutiny and has been found satisfactory in principle.

Details of the Disclosure

Here are the key takeaways from the disclosure filed with BSE:

• Matter Considered: IA No. 41 of 2025 regarding the resolution plan submitted by Authum Investment & Infrastructure Limited.

• NCLT Bench: Mumbai Bench, Court-II.

• Hearing Date: April 21, 2025.

• Corporate Debtor: Vas Infrastructure Limited.

• CIRP Status: Undergoing insolvency resolution under IBC 2016.

• Resolution Professional: Ashok Kumar Golechha.

The disclosure was made via official communication by the Resolution Professional, ensuring transparency and compliance with SEBI regulations.

Implications for Shareholders and Creditors

For shareholders and creditors of Vas Infrastructure, this development is crucial. A successful resolution could mean:

• Revival of business operations under new management.

• Recovery of dues for creditors, at least partially.

• Potential upside for minority shareholders, depending on restructuring outcomes.

• Avoidance of liquidation, which typically yields lower recovery.

However, it's important to note that the NCLT's approval is not automatic. The tribunal may seek modifications, conduct further hearings, or ask for clarifications from the resolution applicant and the RP.

About the Resolution Applicant – Authum Investment

Authum Investment & Infrastructure Limited is a Non-Banking Financial Company (NBFC) engaged in investments, financing, and infrastructure-related activities. The company has previously taken over several stressed assets through successful resolution plans and has a track record in asset recovery and restructuring.

Their involvement in the Vas Infrastructure case adds credibility and raises hopes for successful resolution. If the plan is approved, Authum would take over management control and proceed with the implementation phase as per the submitted resolution proposal.

Next Steps in the Process

Following today’s hearing, the NCLT may:

1. Approve the resolution plan, making it binding on all parties.

2. Direct modifications or clarifications from the RP or applicant.

3. Postpone the hearing for further submissions or objections.

Any further action will depend on the tribunal’s observations and the response from stakeholders. Market participants and stakeholders are advised to monitor BSE filings and NCLT orders for further updates.

Conclusion

The listing of the resolution plan of Vas Infrastructure for consideration by NCLT Mumbai on April 21, 2025, marks a pivotal moment in the company's insolvency journey. It is a testament to the processes under the IBC that aim to revive financially distressed companies while ensuring justice and recovery for creditors. If approved, the plan by Authum Investment could lead to a turnaround for Vas Infrastructure, benefiting all associated parties and the broader economy.

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