The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the acquisition of bankrupt listed infrastructure firm Valecha Engineering Ltd by a consortium of JK Solutions Pvt Ltd and One Media Facility Management.
Mumbai-based Valecha Engineering builds roads, bridges, tunnels, airports and irrigation dams, among other projects.
The resolution plan will be binding on Valecha Engineering, its employees and creditors including the central and state governments and local authorities, the NCLT bench comprising judicial member Kishore Vemulapalli and a technical member Anu Jagmohan Singh said in an order dated June 25.
But it should not be construed as a waiver of any statutory obligations of the company, and the same shall be dealt by the appropriate authorities in accordance with law, the NCLT said.
The JK Solutions-led consortium has proposed to pay ₹79.52 crore to creditors against admitted liabilities of ₹2,869 crore. The admitted liabilities include secured financial creditors’ claims of ₹1,365 crore and unsecured financial claims of ₹1,420 crore.
The financial creditors include JC Flowers Asset Reconstruction, State Bank of India, Axis Bank, Canara Bank, Indian Overseas Bank and Bank of Baroda.
The company’s committee of creditors had approved the revival plan with 97.54% of their votes in favour of the consortium’s proposal. Mumbai-based infrastructure firm METCON India Realty & Infrastructure had also shown interest in acquiring the company under the Insolvency and Bankruptcy Code.
Nishit Dhruva, managing partner of law firm MDP & Partners, said saving large infrastructure companies through the resolution process is a very pragmatic decision.
“Timely and successful resolution will help save jobs and assets of the company,” said Dhruva. “But at the same time, the tribunal has clarified that the approval of the revival plan shall not be construed as a waiver of any statutory obligation of Valecha Engineering, which has made sure that the interest of all the stakeholders remains protected.”
