ICICI BANK LTD Vs. INNOVENTIVE INDUSTRIES LTD

JUDGEMENT

(1.) Order pronounced in the Court on 23.11.2017

(2.) The applicant says that this application has been filed by it and on behalf of other resolution applicants namely Kitara International Ltd. and Lighthouse Partners. It says that the Corporate Debtor (R7) is a multi-product company catering to applications in diverse sectors such as automobile, boiler and heat exchangers, energy, oil and general engineering. It specializes in processing various types of steels, faster development cycles, flexible production systems, effective supply chain management for efficient delivery and capability to make tubular transformations and it always comes out with continuous innovations.

(3.) The resolution applicant on September 3, 2017 submitted a term sheet along with proposed Resolution Plan for Rs. 284.3crores (in present value terms) @13% discounting rate with a compulsory change in management of the company to make a cash payment of around Rs. 180crores within a period of one year subject to all approvals and for conversion of residual debt (Rs. 1191.9crores) 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. 41.6crores will be paid by converting Rs. 36.1crores 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. 284.3crores as against proposed recovery of Rs. 135.4crores through liquidation.