CSL concludes payment of Rs65 cr bid amount
KOCHI: The Chennai-based shipbuilding firm Tebma Shipyards (TSL) has become a wholly owned subsidiary of Cochin Shipyard Ltd (CSL) following the payment of the bid amount of Rs65 crore as per the approved Resolution Plan for the company.
This follows the National Company Law Tribunal (NCLT), Chennai order on March 4, 2020 approving the Resolution Plan submitted by CSL for taking over Tebma Shipyards that had been admitted for Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).
SBI took the biggest hit
As per the plan approved, the lenders of the company had taken a huge haircut since the CSL had proposed to pay only 9.74 per cent of the admitted debt of TSL, which stood at Rs602.39 crore with State Bank of India (SBI) accounting for 56.35 per cent of the total debt.
According to CSL’s resolution plan, the resolution applicant proposed a sum of Rs65 crore as the resolution plan amount payable to all the stakeholders as full and final settlement and discharge of all the claims of the corporate debtor, including the CIRP costs.
Financial creditors to Temba Shipyard include State Bank of India (Rs339.22 crore), Andhra Bank (Rs108.21 crore), IDBI Bank (Rs49.15 crore) Syndicate Bank (Rs39.67 crore), ICICI Bank (Rs38.98 crore) and Punjab National Bank (Rs27.16 crore).
While the total debt stood at Rs602.39 crore, the amount provided for the financial creditors under the CSL’s plan was just Rs58.65 core, which is 9.74 per cent of the pay-out on admitted debt.