Excelsior Correspondent
JAMMU, Dec 20: The Kolkata Bench of the National Company Law Tribunal headed by Member Judicial Rohit Kapoor has approved Rs 441.11 crore resolution plan submitted by BTL EPC for the revival of McNally Bharat Engineering Co Ltd.
BTL EPC, a Shrachi group company promoted by late Shrawan Kumar Todi, is offering Rs 428.73 crore, which translates to 12.05 per cent recovery of the Rs 3,514.65 crore of admitted claim of the financial creditors.
The total claim of the creditors of McNally Bharat, which was promoted by the Khaitan family of Williamson Magor Group, stood at Rs 5,015.28 crore. Apart from secured creditors, mostly scheduled commercial banks, the unsecured creditors had Rs 1,282.58 crore claims. They will get only Rs 3.46 crore from BTL.
According to the plan submitted by BTL, it has to stump up Rs 151 crore within eight months and also provide a bank guarantee of Rs 251 crore.
“We hope to turnaround the company, which will not be an easy task. However, McNally has a lot of value which we plan to make good use of,” said Ravi Todi, Managing Director of BTL EPC.
McNally employs about 300 people and it has an order book of around Rs 1,200 crore. The company has many clients and goodwill in the material handling business for the coal and power sector, complimenting the work BTL EPC does.
McNally, which led to financial crisis in Williamson Magor Group, was admitted for the corporate insolvency resolution process following an application by Bank of India. While initially more than 20 companies showed interest, the competition finally boiled down to BTL and Nalwa Steel & Power, a company promoted by Naveen Jindal.
Initially BTL had become the highest bidder with a plan value of Rs 353.98 crore. However, the committee of creditors wanted to maximise value from the resolution process and called another round of bidding. Nalwa emerged as the H1 bidder. Following this, CoC asked the two bidders to revise their resolution plans.
In the 32nd CoC meeting held on July 27, both the plans of Nalwa and BTL were approved by 90.06 per cent voting share which led to a tie. The CoC then applied the net present value formula as tie breaker and the BTL plan won.