Latest news with #NCLT
Time of India
2 days ago
- Business
- Time of India
Adani Power's proposal to acquire Vidarbha Industries Power's approved by NCLT
The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday approved Adani Power Ltd 's acquisition of Vidarbha Industries Power Ltd. Before the tribunal's nod, the secured creditors of the company approved the plan in February 2024. The company has admitted liabilities of Rs 6,753 crore, and the successful resolution plan has proposed to pay Rs 4,000 crore to acquire the company. Vidarbha Industries (VIPL) owns and operates a 600-megawatt (MW) thermal power plant, with two 300-MW units each in Nagpur in Maharashtra state. 'We find that the Resolution Plan has been approved with 100% voting share. As per the CoC, the plan meets the requirement of being viable and feasible for the revival of the Corporate Debtor,' said the division bench of judicial member Nilesh Sharma and a technical member, Sameer Kakar, in its 75-page order. 'We also observe that none of the stakeholders in the process of CIRP have come forward before this Tribunal with an application objecting to the approval of this Resolution Plan,' noted the tribunal. The tribunal also observed that the resolution plan is binding on the Corporate Debtor (VIPL), its employees, members, creditors, guarantors and other stakeholders. Last year in September, the tribunal had admitted CFM Asset Reconstruction's application to admit the company under the Corporate Insolvency Resolution Process (CIRP). On February 24, Adani Power in its stock exchange filing had said that the lenders have approved its revival plan for the company and the 'implementation of the resolution plan' is subject to the 'LOI terms as well as requisite approvals from the NCLT and other regulatory approvals'. VIPL was formerly a subsidiary of Anil Ambani-owned Reliance Power . It entered insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). Reliance Power had announced last year that VIPL was no longer its subsidiary. Admitting the petition, the bench appointed Bimal Kumar Agarwal as the interim resolution professional (IRP) to oversee the insolvency process, including managing VIPL's assets and inviting resolution plans. VIPL, a special-purpose vehicle, was set up by Reliance Power for building a coal-based thermal power plant comprising two units of 300 MW each at Butibori at Nagpur in Maharashtra. The project was awarded after an international bidding process run by the Maharashtra Industrial Development Corporation, and it was eventually converted into an independent power project. The Butibori project has a long-term power purchase agreement (PPA) with Maharashtra for 3085 MW, with potential for expansion. The company defaulted on loans totalling Rs. 3,872 crore to Axis Bank and State Bank of India (SBI), leading to the classification of its account as a non-performing asset in 2019. Both lenders later sold their debts to CFM ARC in 2023, as reported by ET in October 2023.
Time of India
2 days ago
- Business
- Time of India
Adani Power's proposal to acquire Vidarbha Industries Power's approved by NCLT
The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday approved Adani Power Ltd 's acquisition of Vidarbha Industries Power Ltd. Before the tribunal's nod, the secured creditors of the company approved the plan in February 2024. The company has admitted liabilities of Rs 6,753 crore, and the successful resolution plan has proposed to pay Rs 4,000 crore to acquire the company. Vidarbha Industries (VIPL) owns and operates a 600-megawatt (MW) thermal power plant, with two 300-MW units each in Nagpur in Maharashtra state. 'We find that the Resolution Plan has been approved with 100% voting share. As per the CoC, the plan meets the requirement of being viable and feasible for the revival of the Corporate Debtor,' said the division bench of judicial member Nilesh Sharma and a technical member, Sameer Kakar, in its 75-page order. 'We also observe that none of the stakeholders in the process of CIRP have come forward before this Tribunal with an application objecting to the approval of this Resolution Plan,' noted the tribunal. The tribunal also observed that the resolution plan is binding on the Corporate Debtor (VIPL), its employees, members, creditors, guarantors and other stakeholders. Last year in September, the tribunal had admitted CFM Asset Reconstruction's application to admit the company under the Corporate Insolvency Resolution Process (CIRP). On February 24, Adani Power in its stock exchange filing had said that the lenders have approved its revival plan for the company and the 'implementation of the resolution plan' is subject to the 'LOI terms as well as requisite approvals from the NCLT and other regulatory approvals'. VIPL was formerly a subsidiary of Anil Ambani-owned Reliance Power. It entered insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). Reliance Power had announced last year that VIPL was no longer its subsidiary. Admitting the petition, the bench appointed Bimal Kumar Agarwal as the interim resolution professional (IRP) to oversee the insolvency process, including managing VIPL's assets and inviting resolution plans. VIPL, a special-purpose vehicle, was set up by Reliance Power for building a coal-based thermal power plant comprising two units of 300 MW each at Butibori at Nagpur in Maharashtra. The project was awarded after an international bidding process run by the Maharashtra Industrial Development Corporation, and it was eventually converted into an independent power project. The Butibori project has a long-term power purchase agreement (PPA) with Maharashtra for 3085 MW, with potential for expansion. The company defaulted on loans totalling Rs. 3,872 crore to Axis Bank and State Bank of India (SBI), leading to the classification of its account as a non-performing asset in 2019. Both lenders later sold their debts to CFM ARC in 2023, as reported by ET in October 2023.
Time of India
2 days ago
- Business
- Time of India
Byju's RP's suit claims directors owe compensation to company under IBC laws
An EY-backed resolution professional (RP) has filed lawsuits at the National Company Law Tribunal (NCLT) claiming former Byju's directors owe compensation to the company for fraudulent transfers of the company's assets, according to people familiar with the matter. The lawsuits invoke a provision under the Insolvency and Bankruptcy Code which provides legal recourse to reverse transactions undertaken by a company's previous management. Shailendra Ajmera, the RP of Think and Learn, which houses Byju's ed tech business and is undergoing insolvency, has claimed in the lawsuits filed in late April that two separate sets of transactions were detrimental to the company. One of them resulted in a $533 million investment held by a US subsidiary moving to related companies and the other involved a sum of Rs 130 crore moving from Think and Learn to its subsidiary in India, said the people. Think and Learn was, therefore, deprived of these funds, it is claimed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo The lawsuits implicate the company's three former directors – Byju Raveendran , Riju Ravindran and Divya Gokulnath . Ajmera has demanded that the sums be made good to the company by the former directors. ETtech Live Events Riju Ravindran had in early April filed a petition with the NCLT claiming Ajmera should be removed as the RP of Think and Learn because EY has been an adviser to the company prior to its admission into insolvency proceedings, raising the issue of conflict of interest. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Further, he claimed that EY was perpetuating a fraud and acting in the interest of Glas Trust, which claims to be representing the majority of Think and Learns creditors, and not in the interest of the company. In a recent petition filed with the NCLT, Riju Ravindran claimed that Glas Trust, which is the lenders' agent that forms 99% of the committee of creditors of Think and Learn, is not legally entitled to represent the lenders. He claimed that Glas Trust didn't have the support of 50% of the lenders as required in the borrowing agreements entered between Think and Learn and its lenders. He also claimed that it had no authority to instruct Ajmera or undertake any acts towards the company's insolvency. Ajmera, his lawyers Chandhiok and Mahajan, Byju Raveendran and Riju Ravindran did not respond to ET's queries. One of Ajmera's two lawsuits follows a recent Delaware court ruling in the US where Byju's Alpha's move to transfer a $533 million ownership interest in a set of funds called Camshaft Funds to related entities was under question. Byju's Alpha is a US subsidiary of Think and Learn. The Delaware court termed the transfers illegal and demanded their reversal. The former directors have appealed the ruling.
Time of India
4 days ago
- Business
- Time of India
Meesho to pay $288 million tax to come back
Representative image MUMBAI: Meesho has secured the NCLT nod to move its domicile back to India from the US. The tribunal has approved the e-commerce firm's proposal to demerge its Indian operations from its US parent entity. This essentially allows Meesho to separate from its US holding company and merge with its Indian entity, completing the reverse flipping process. Meesho is expected to pay about $288 million in taxes to flip back to India, sources said. The company did not comment on the tax payments but confirmed the NCLT's approval. "This (NCLT) filing is a part of our ongoing transition to re-domicile in India. With the majority of our operations, including customers, sellers, creators and Valmo partners already based here, this step aligns our corporate structure with our day-to-day business footprint," a Meesho spokesperson said. Meesho joins a clutch of startups like Zepto, Razorpay and Groww, which have redomiciled to India to align better with local norms and tap into India's public markets by way of IPO. Meesho is firming up its draft IPO papers, sources said. A batch of Indian startups, including PhonePe, Pine Labs, Lenskart and Zepto are preparing to get listed Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
5 days ago
- Business
- Business Standard
Meesho gets NCLT approval to relocate to India, clearing path for IPO
The National Company Law Tribunal (NCLT) has approved Meesho's plan to relocate its headquarters from Delaware to India, marking a key step in the e-commerce platform's path towards an initial public offering (IPO). The approval enables Meesho to formally separate from its US entity and merge operations under its Indian arm, completing a long-anticipated corporate restructuring. The company is reportedly expected to pay approximately $288 million in taxes related to the so-called reverse flip. "This filing is part of our ongoing transition to re-domicile in India. With the majority of our operations, including customers, sellers, creators and Valmo partners already based here, this step aligns our corporate structure with our day-to-day business footprint,' said a Meesho spokesperson. However, the spokesperson didn't comment on the amount of tax the company is expected to pay. Meesho filed for approval with the NCLT in January, shortly after closing a $550 million funding round led by new investors including Tiger Global, Mars Growth Capital and Think Investments. The move reflects a broader trend among Indian startups seeking to re-domicile in India amid evolving regulatory frameworks and investor interest in local listings. These include Razorpay, PhonePe, Groww, Pine Labs and Zepto — which have incurred significant tax liabilities as part of efforts to shift their domicile back to India after initially incorporating abroad. Razorpay paid approximately $150 million, while PhonePe and Groww incurred tax liabilities of ₹8,000 crore (about $1 billion at the time) and ₹1,340 crore (roughly $157 million), respectively, to complete their relocations. E-commerce firm Flipkart, with an estimated $36 billion valuation, is also in the process of shifting its domicile from Singapore to India.
