The National Company Law Tribunal (NCLT) Mumbai bench has approved Rs. 256.4 crore resolution plan of Innova Captab for Sharon Bio-Medicine in its order on May 17.
Innova Captab resolution plan was approved by 79.28% voting share of the members of the Committee of Creditors (CoC), according to the NCLT order.
Innova Captab and Tirupati Medicare have submitted their resolution plans to the Committee of Creditors (CoC) in September 2022. Tirupati’s resolution plan was 25% lower than Innova Captab.
Following voting, in November 2022, the CoC accepted the resolution submitted by the Innova Captab.
Innova Captab will be paying the amount upfront, and has submitted the performance bank guarantee of Rs 35 crore in accordance with the terms of the Successful Resolution Plan.
The total admitted claims by creditors were Rs 920.5 crore. Around 700 crores claim was from secured lenders.
Sources told ET that the secured lenders will be getting 50% of the principal.
” It took 6 years to get this case resolved. It was one of the first cases admitted after the Insolvency and Bankruptcy Code. The company has continued its operations profitably during CIRP (Corporate Insolvency Resolution Process) and during Covid, and generated 75 crore of cash, with 15% EBITDA,” a person who didin’t want to be named said referring to Sharon’s case.
In June this year, lenders had appointed EY-backed Pulkit Gupta as the resolution professional of Sharon Bio-Medicine. He replaced EY-backed Dinkar T Venkatasubramanian, who was the RP since April 2017, when it was admitted for insolvency proceedings.
In August last year ET reported that SBI has the largest claim of Rs 142 crore among secured lenders, while Deutsche Trustee Company and India Factoring have total claims of Rs 170 crore in the unsecured creditors’ category. Union Bank of India, Indian Overseas Bank, Canara Bank and Punjab National Bank are among the secured creditors of Sharon Bio Medicine.
The debt-laden Sharon develops and manufactures pharmaceutical intermediates, actives, and finished dosages, besides generic alternatives for new drugs.
The Mumbai-based Innova Captab is engaged in the manufacturing of intermediates, active pharmaceutical ingredients and finished dosages catering to both the domestic Indian and foreign market.
Innova Captab declined to comment.
BDO advisers partner Nitesh Mehta was the financial advisor on the deal. Khaitan & Co partner Siddharth Srivastava was the legal advisor.
