The Mumbai bench of NCLT on Wednesday adjourned until May 4 the hearing on the resolution plan for Monnet Ispat and Energy, with the judge seeking clarity from the resolution professional’s counsel on a few aspects of the revival blueprint.
The presiding judge, Justice BSV Prakash Kumar, questioned senior counsel for the resolution professional Ravi Kadam on the loans given out by Monnet Ispat to companies like Monnet Global and Monnet Power that are all stressed, asking the reasons for the exclusion of the loan amounts from the liquidation value of Rs 2,365 crore.
Kadam’s argument was that even if the loan value of Rs 935 crore were to be added to the liquidation value, according to the waterfall arrangement of creditors, only the secured creditors would benefit, leaving out the operational creditors. Without naming the company, Kumar referred to a case where the payables to the company were more than its liquidation value and on investigation, it was found out that the parties were “fictitious.” Read More
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