NCLT Chennai Approves The Resolution Plan Of Adani Port And Sez Ltd. For Karaikal Port Pvt. Ltd.

Adani Port and SEZ Ltd. is a Mr. Gautam Adani promoted company and a part of Adani Group. It owns 12 domestic ports in India, spread across the states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha.

Background Facts

Omkara Assets Reconstruction Pvt. Ltd. (“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 Karaikal Port Pvt. Ltd. (“Corporate Debtor”).

The Adjudicating Authority admitted the petition and initiated CIRP against the Corporate Debtor on 29.04.2022.

The Resolution Professional received resolution plan from (i) Adani Port and SEZ Ltd.; and (ii) Vedanta Ltd. The Committee of Creditors approved the Resolution Plan of Adani Port and SEZ Ltd. (“Successful Resolution Applicant”) with 100% voting share. Subsequently, the Adjudicating Authority has approved the resolution plan of Adani Port and SEZ Ltd. on 31.03.2023.

The Fair value of the Corporate Debtor was arrived at Rs. 1215,88,27,500/- and the Liquidation value was arrived at Rs. 822,18,01,500/-. Adani’s Resolution Plan proposes to infuse Rs. 1,485 Crores as an upfront amount in the Corporate Debtor and the Resolution Plan is valued at Rs. 1583,06,53,357/- towards discharge of claims of the creditors.

The Financial Creditors are proposed to be paid Rs. 1580,00,00,000/- as against an admitted claim of Rs. 2959,29,25,467/-. The Employees, Workmen, Statutory Authorities and Government Bodies have been proposed to paid full amount of their admitted claims. While the other Operational Creditors are proposed to be paid Rs. 213,60,000/- as against an admitted claim of Rs. 1750,90,757/-. Other creditors are to be paid NIL.

Case Title: Omkara Assets Reconstruction Pvt. Ltd. v Karaikal Port Pvt. Ltd.

Case No.: CP (IB)/85/(CHE)/2022

Counsel for RP: Gopal Jain (Sr. Adv.), E. Om Prakash (Sr. Adv.), P Giridharan (Adv.).

Counsel for SRA: P.S. Raman (Sr. Adv.) for Cyril Amarchand Mangaldas.

Counsel for Financial Creditor: Satush Parasaran (Sr. Adv.), B. Dhanaraj (Adv.).

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