The National Company Law Appellate Tribunal (NCLAT) on Thursday ordered the sole resolution applicant of debt-ridden Jyoti Structures Ltd. to revise its resolution plan The Mumbai-based contractor received only one bid from a consortium of investors led by Sharad Sanghi. The resolution plan involved an upfront payment of ₹170 crore. The remaining amount was to be repaid over 15 years. According to NCLAT, the revised plan should have a reduced repayment period of 5 years as opposed to the 15 years period and a higher upfront payment amount should be introduced to prove the intent of taking over the bankrupt company. Cut down the repayment period; make everybody equal. Let there be win-win position for all. We do not want liquidation but if someone forces us then we’ll have to go for it, said the two-judge NCLAT bench headed by Justice S.J. Mukhopadhyay. The construction firm owes around ₹7,364 crore to a group of lenders, including ₹1,875 crore to State Bank of India. The next hearing of the matter in NCLAT will be held on 18 December.
NCLAT asks Jyoti Structures’ resolution applicant to revise its plan
