NCLT Delhi Approves Resolution Plan For Net 4 India Limited

Background Facts

Net 4 India Ltd. (“Corporate Debtor”) is engaged in the business of Domain name registration, Data Centre & Cloud Hosting Solutions, Enterprise Internet Services, VoIP Solutions, Enterprise Messaging & Hosting Solutions and Network Services Provider

Edelweiss Asset Reconstruction Company Limited (“Financial Creditor”) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor.

On 08.03.2019, the NCLT admitted the petition and initiated CIRP against the Corporate Debtor.

M/s. Open Platforms Pvt. Ltd. along with Co-Applicants Mr. Sudhanshu Rawat and Mr. Dalip Kumar Kewalramani (“Successful Resolution Applicant/SRA”) submitted a Resolution Plan for the Corporate Debtor, which was approved by the Committee of Creditors (“CoC”) with 77.867% voting share. Accordingly, the Resolution Professional filed an application under Section 30(6) of IBC before the NCLT, seeking approval of the Resolution Plan.

Outlay Of The Resolution Plan

The Resolution Plan is valued at Rs. 196.28 Crores alongwith CIRP cost of Rs. 50 Lakhs. The Fair Value is 17.8 Crores and the Liquidation Value is 11 Crores.

The resolution plan proposes to pay the Financial Creditors an amount of Rs. 195.44 Crores against an admitted claim of 439 Crores. The Operational Creditors will be paid Rs. 0.2 Crores as against an admitted claim of Rs. 23.33 Crores.

NCLT Verdict

The Bench has approved the Resolution Plan of M/s. Open Platforms Pvt. Ltd. along with Co-Applicants Mr. Sudhanshu Rawat and Mr. Dalip Kumar Kewalramani for the Corporate Debtor.

Case Title: Edelweiss Asset Reconstruction Company Limited v Net4 India Limited

Case No.: IB-409/PB/2017

Counsel For Applicant: Chandhiok and Mahajan

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