NCLAT asks Jyoti Structures’ resolution applicant to revise its plan

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.

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