The bankruptcy court has admitted an application filed by listed industrial packaging solutions company Yashraj Containeurs Ltd to admit it for a voluntary corporate insolvency resolution process (CIRP). The company approached the tribunal after it failed to repay dues of over Rs 73 crore.
The Mumbai bench of the National Company Law Tribunal (NCLT) has appointed Manish Motilal Jaju as the interim resolution professional of the company.
“During the CIRP period, the management of the corporate applicant will vest in the IRP/RP,” said the division bench of judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh in its order of February 22. “The suspended directors and employees of the corporate applicant shall provide all documents in their possession and furnish every information in their knowledge to the IRP/RP.”
Before the tribunal’s order, the company through its counsel Nausher Kohli argued that it was already a sick unit and was running with limited means with huge liabilities. “The profits, if any, earned by the corporate applicant (Yashraj Containeurs), trade receivables and other assets of the corporate applicant are not sufficient to meet the huge liabilities of the company,” he argued.
Before filing this application, the company had also sought approval from its shareholders in an extraordinary general meeting (EGM) on June 17, 2023, for admitting the company to the voluntary bankruptcy process. The company’s lender Bank of India had also filed its affidavit in the tribunal stating that it has no objection regarding the same.
As per the latest December 2023 disclosures, the promoters hold about 74.89% stake in Jayesh Vinodrai Valia-promoted Yashraj Containeurs.
A total of 7,325 companies across sectors were brought into administration until December end, according to the latest data from IBBI. Of these companies admitted for revival, about 435 have approached for the voluntary resolution process.
Recently, Wadia group-promoted budget airline Go First was admitted under the voluntary insolvency resolution. Before that, companies such as telecom operator Aircel Ltd and Ricoh India Ltd, the largest player in printing and document solutions, had also approached the tribunal with similar applications.
Source: Economic Times