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)

Particulars Admitted claims % of total claim
Financial Creditors 1,428.21 94.78%
Operational Creditors 78.66 5.22%
Total 1,506.87 100%
Liquidation Value 269.9

Source: IBBI disclosure

Resolution plan

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

Category Amount (Rs in Crores) Revised Term
Operational Creditor, statutory dues and other creditors (except financial creditors) As per admitted claims To be paid in three years
Cash Credit facility 37.38 at the rate of one-year MCLR of SBI plus spread of 0.70% p.a.
Working capital term loan 37.38 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 878.67 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 122.81 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
NBFC-Term Loan 40.34 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 316.22 to be paid liquidation value amounting to Rs. 49.02 crores
Equity Infusion
Equity Infusion 128.19 Equity Infusion by promoter and promoter group over the period of 3 years.
Promoter Shareholding (in %) 80.88% 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

Please Subscribe to read the full article.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments