Kolkata-based Palogix Infra gets new promoter with 100% creditor consent

Kolkata-based Palogix Infrastructure has become one of the first companies admitted in NCLT to receive 100 per cent creditor's consent for implementation of a resolution plan.  

The resolution plan, submitted by submitted by Sanjay Kumar Mishra, backed a Delhi-based non-banking finance company. JFC Finance was approved by the Kolkata bench of NCLT on 12th February. The plan involved about 29 per cent haircut on interest outstanding, while the full principal amount is to be repaid, Mamta Binani, resolution professional for the company, told Business Standard.  

“Resolution plan of Sanjay Kumar Mishra was approved by the CoC with 100 per cent voting percentages. According to the RP, none of the members of CoC absented from the voting and the plan submitted to the Adjudicating Authority was voted in affirmative with 100 per cent voting percentage and thereby approved the resolution plan of Sanjay Kumar Mishra,” said the NCLT order delivered last month.

Palogix Infrastructure is a logistics solution company, and had an outstanding debt of about Rs 1.50 billion.

ICICI Bank, one of its financial creditors had triggered corporate insolvency proceedings against the company in May last year. While, initially about 16 Expression of Interests(EOIs) were received, ultimately only two entities—Godavari Commodities and Sanjay Kumar Mishra, submitted the bid.

While Godavari Commodities' bid was rejected on technical ground, the resolution plan of Sanjay Kumar Mishra was approved by the CoC, as it not only met financial and technical conditions but involved minimal haircut.

According to the website of Palogix Infrastructure, the company has private freight terminals in Durgapur and Kolkata in West Bengal, NCR and Rudrapur in Uttarakhan.

“All the creditors got their dues, including full payment to the government and operational creditors were also given payment. The banks had a good deal,” said Binani.

Lenders to Palogix Infrastructure include, Andhra Bank, Indian Overseas Bank, and HDFC Bank apart from ICICI Bank, among others.

Palogix Infrastructure was started in 2007 by Ramesh Saran Rai, an ex-ITRS (Indian Railway Traffic Services) officer. The company ran into debt, even as it embarked upon an aggressive expansion plans.