Edelweiss ARC moves NCLAT against Synergies Dooray

The National Company Law Appellate Tribunal (NCLAT) has admitted Edelweiss ARC’s appeal against Synergies Dooray for a resolution plan made via the corporate restructuring process under the Insolvency and Bankruptcy Code (IBC).

The appellate tribunal has ordered issuance of notices to all the parties related to the case. The asset restructuring company has raised objection to the way in which the resolution plan was made and how it was approved by the committee of creditors.

In its appeal, Edelweiss ARC had questioned the conduct of the insolvency professional in the case. It decided to move the appellate tribunal after the National Company Law Tribunal (NCLT) approved the resolution plan for a company under the IBC.

In this case, the creditors had to take a haircut of almost 94 per cent, according to the resolution plan. The resolution plan states that the acquirer, Synergies Castings, could pay Rs 54 crore to its creditors of its dues of more than Rs 900 crore, and that, too, at attractive terms. Of the Rs 54 crore that the acquirer could pay, Rs 20-odd crore would be paid up front and the remaining over five years. The principal amount of debt was Rs 215 crore, said a source. The remaining Rs 685 crore includes interest, statutory dues and payments to other creditors.