Kotak okays resolution plan for Monnet Ispat
MUMBAI: Kotak Mahindra Bank Ltd has asked the dedicated bankruptcy court conducting insolvency proceedings against Monnet Ispat and Energy Ltd to include it in the list of “assenting” lenders in favour of the resolution plan submitted offered jointly by JSW Steel Ltd and AION Capital Partners Ltd.
On Tuesday, senior counsel Darius Khambata, representing Kotak Mahindra Bank, said the bank, an unsecured financial lender to Monnet Ispat and Energy, was among the dissenting unsecured financial creditors until now but would now want to be an “assenter”, or part of the lenders who have approved the resolution plan.
“We are an unsecured financial creditor with a claim of around ₹73 crore. However, if we become an ‘assenter’, we may get to recover around ₹3-3.5 crore,” said Khambata. “This will not change anything in the resolution plan that has been submitted since the resolution plan has been passed by about 98% majority approval from the committee of creditors,” he added.
After hearing arguments, the division bench of the National Company Law Tribunal (NCLT) comprising B S V Prakash Kumar and Ravi Kumar Duraisamy directed the bank to file an affidavit in this regard and posted the hearing for April 25.
The bench observed that any decision on a change in Kotak Mahindra Bank’s status after the 270-day deadline and submission of the plan to NCLT could set a precedent.
“The admitted claims towards Monnet Ispat & Energy are about ₹11,400 crore, while the liquidated value of the company stands at around ₹2,365 crore,” argued Ravi Kadam, senior counsel representing the resolution professional in the matter.