After a long-drawn case, the National Company Law Tribunal (NCLT) Mumbai has given approval to Dalmia Cement (Bharat) regarding the resolution plan for the revival of Murli Industries.
Dalmia Cement (Bharat) Ltd is a one of the prominent player in the cement manufacturing industry and is a wholly-owned subsidiary of the Dalmia Bharat Ltd who is listed on stock exchange having a market cap of Rs 18,738 crore (approx.)
Murli Industries Ltd. has an integrated cement manufacturing plant with an installed capacity of 3MT in Chandrapur district, Maharashtra along with the captive thermal power plant of 50mw. In addition, Murli Industries also has paper and solvent extraction units in Maharashtra. The operations of the Murli Industries (Corporate Debtor) came to stand still during FY 2015-16.
IBC Process against Murli Industries Ltd
Section 7 application filed by one of the financial creditor Edelweiss Asset Reconstruction Company Limited (EARC) was admitted by NCLT and Corporate Insolvency Resolution Process (CIRP) was started against Murli Industries. Resolution plan as submitted by Dalmia Cement is approved by Committee of Creditors (CoC) with 100% voting shares and creditors are getting Rs 402 crore for their claim of Rs 3,171.26 crore. NCLT approved the plan with couple of modifications in the resolution plan. The various issues and observation made by NCLT in the resolution plan is covered in this article.
Various hurdles in Resolution plan approval
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