ICICI BANK LTD Vs. INNOVENTIVE INDUSTRIES LTD

JUDGEMENT

(1.) It is a miscellaneous application filed by Resolution Applicant namely Suyash Outsourcing Pvt. Ltd. against Bank of India (R1), Bank of Baroda (R2), UCO Bank (R3), Canbank Factors Ltd. (R4), IFCI Factors (R5), ICICI Bank Ltd. (R6 - the Financial Creditor who moved this CP 01 /2016 u/s. 7 of IBC), Innoventive Industries Ltd. (R7- It is the Corporate Debtor against which R6 filed this CP) seeking this Bench to grant reliefs:

(2.) The resolution applicant on September 3, 2017 submitted a term sheet along with proposed Resolution Plan for Rs. 284.3 crores (in present value terms) @13% discounting rate with a compulsory change in management of the company to make a cash payment of around Rs. 180 crores within a period of one year subject to all approvals and for conversion of residual debt Rs. 1191.9 crores) into Cumulative Convertible Optionally Redeemable Preferential Shares (CCORPS), redemption @ 0.01 % of which would be guaranteed by the promoter by way of personal guarantee payable in instalment at the end of 20 years, the coupons on CCORPS shall be paid annually to the Financial Creditor, the payment towards coupon on the proposed CCORPS shall not start before dissenting lenders are settled. Unsecured lenders having dues of Rs. 41.6 crores will be paid by converting Rs. 36.1 crores due to Canbank Factors Ltd. and IFCI Factors Ltd. shall be converted into 0.01% CCORPS payable in one instalment at the end of 20 years. The applicant has further stated that the Resolution Plan estimated total recovery of Rs. 284.3 crores as against proposed recovery of Rs. 135.4 crores through liquidation.

(3.) The sum and substance of this application is that in Committee of Creditors (CoC) meeting, the Resolution Plan given by this applicant has not been approved with 75% vote sharing of the Committee of Creditors (CoC) but since 66.57% of the CoC voted in favour of the Resolution Plan, the applicant shall be permitted to submit revised Resolution Plan after reducing the time earlier envisaged for obtaining shareholders' approval for change of period for making cash payments, consequently to direct Resolution Professional to present the modified Resolution Plan before CoC, basing on which, CoC be directed to cast votes on such modified Resolution Plan.