NCLT approves BRS Ventures' Rs 12.14 bn plan for Assam Company takeover

The Guwahati bench of NCLT on Thursday approved the Rs 12.14 billion resolution plan of Abu Dhabi-based BRS Ventures for acquiring the stressed assets of Assam Company (India) Ltd, which was brought under the insolvency resolution process in October last year.

Under this plan, which is nearly 3.5 times the liquidation value of Assam Company, the lenders will be taking a 20 per cent haircut over their total claims, including interest. However, the unsecured creditors will be receiving Rs 500 million and claims of operational creditors and the workers in the company have been addressed fully in the resolution plan.

A monitoring committee will now be appointed by the bankers to monitor the implementation of the resolution plan.

Sources said BRS Ventures, whose resolution plan was approved by the Committee of Creditors (CoC) on August 10, has already furnished a Rs 8.34 billion bank guarantee and the residual amount will be paid to the lenders within the next three months. However, an upfront cash payment of Rs six billion needs to be made to the financial creditors under the resolution plan, which can be invoked by the banks from the bank guarantee itself.