rajahmundry: NCLT Approves Prakash Asphaltings & Toll Highways Resolution Plan for Rajahmundry Godavari Bridge

The Bankruptcy Court has approved the resolution plan submitted by Prakash Asphaltings & Toll Highways (India) Ltd for Rajahmundry Godavari Bridge Ltd (RGBL). The bridge, built over the Godavari River, connects Rajahmundry and Kovvur in Andhra Pradesh.

The Mumbai bench of the National Company Law Tribunal (NCLT) gave its approval after lenders approved the stimulus package with 100% votes in favour.

The resolution professional had received claims of over Rs 985 crore in the case, while the successful resolution plan offered a total consideration of Rs 452 crore for the business.

“It (the resolution plan) binds the debtor company, its employees, its members, its creditors, including the central government, any state government or any local authority to whom a debt relating to the payment of contributions arising from a law for the time being,” the divisional bench, chaired by HV Subba Rao and Anuradha Bhatia, said in its August 10 order.

The

had approached the court after the company defaulted on its obligations of around Rs 184 crore to the lender. On February 27, 2020, the court admitted the company to the Corporate Insolvency Resolution Process (CIRP) and appointed Vishal Ghisulal Jain as resolution professional.

In 2008,

had formed a Special Purpose Vehicle, RGBL, to undertake the implementation of the Godavari Bridge Toll Project on a construction, operation and transfer toll basis.

Lawyer Pulkit Sharma, along with firm Saraf & Partners, appeared for the firm’s resolution professional and informed the court that they initially received nine expressions of interest for RGBL.

However, apart from Prakash Asphaltings & Toll Highways (India), only four other bidders – Kochi Aroor Tollways, Kalyan Toll Infrastructure,

and GR – have submitted their resolution plan.

According to the company’s website, the bridge has a total length of 4.15 km and the total length of the corridor is approximately 14.48 km. The total construction cost of the bridge was more than Rs 1,114 crore.

Approving the resolution plan of Prakash Asphaltings & Toll Highways (India), in a separate order, the court dismissed a request filed by the BSE-listed company

Ltd, formerly known as Gammon Infrastructure Projects Ltd.

AJR Infra & Tolling had sought court intervention to order the lenders to review its RGBL resolution plan. The company was ready to pay Rs 435 crore for the company.

However, while rejecting the request of the former promoters, the court observed that it does not have the power to give instructions to the lenders to examine the compromise proposal submitted by AJR Infra & Tolling because it is the exclusive domain of the committee. creditors.

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