MBL Infrastructure Ltd (MBL Infra) is engaged in the execution of civil engineering projects. The Company provides integrated engineering, procurement and construction (EPC) services for civil construction and infrastructure sector projects. Equity shares of company is listed on BSE & NSE and current market cap of the company is Rs. 58.24 crores.
Insolvency Resolution Process & Resolution plan:
Last year on 30th March 2017 NCLT accepted an application filed by RBL bank for initiation of Corporate Insolvency Resolution Process (CIRP) against MBL Infra. During CIRP, a resolution plan submitted by MBL promoter A.K Lakhotia is accepted by Committee of Creditors (CoC) and approved by NCLT by its order dated 18/04/2018.
Table 1: MBL Infra – Admitted claim (Rs in crores)
||% of total claim
Source: IBBI disclosure
There is no haircut for lenders other than dissenting financial creditors who are paid liquidation value in the resolution plan, existing debt is restructured, and more time is given to pay-off the same with some fresh equity infusion by promoter group in the company.
Table 2: Terms of Resolution Plan
||Amount (Rs in Crores)
|Operational Creditor, statutory dues and other creditors (except financial creditors)
||As per admitted claims
||To be paid in three years
|Cash Credit facility
||at the rate of one-year MCLR of SBI plus spread of 0.70% p.a.
|Working capital term loan
||at the rate of one-year MCLR of SBI plus spread of 0.70% p.a. to be paid in 39 unequalled quarterly instalments
|0.10% Non-convertible debenture
||redeemable over a period of 9.75 years (in 39 unequalled quarterly instalments since issued) (at a premium of 10% at the time of final redemption
|External Commercial Borrowings
||to be paid over a period of 9.75 years @ one-year MCLR of SBI plus spread of 0.70% p.a. in Indian rupees to be paid in 39 unequalled quarterly instalments
||to be paid over a period of 9.75 years @ one-year MCLR of SBI plus spread of 0.70% p.a. to be paid in 39 unequalled quarterly instalments
|Dissenting financial creditors
||to be paid liquidation value amounting to Rs. 49.02 crores
||Equity Infusion by promoter and promoter group over the period of 3 years.
|Promoter Shareholding (in %)
||Upon implementation of the Resolution Plan, the equity shareholding of the Promoters would increase from 21.73% to 80.88%. Promoters have already infused Rs. 63.30 crores to raise the stake up to 68.49%. For additional stake of 12.39%, Rs 67.90 crores required (assumed at face value)
Note: Resolution plan is not available in Public Domain, we have taken information from Investor presentation and from Annual report of MBL Infra.
Pre-& post shareholding
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