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 on the river Godavari, connects Rajahmundry and Kovvur in Andhra Pradesh.
The Mumbai bench of the National Company Law Tribunal (NCLT) gave its nod after the lenders approved the revival plan with 100% voting in its favour.
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The resolution professional had received claims of more than Rs 985 crore in the case, while the successful resolution plan proposed a total consideration of Rs 452 crore for the company.
The Union Bank of India had approached the tribunal after the company defaulted on its dues of about Rs 184 crore to the lender. On February 27, 2020, the tribunal admitted the company under the Corporate Insolvency Resolution Process (CIRP) and appointed Vishal Ghisulal Jain as the interim resolution professional.
The bridge has a total length of 4.15 km and the length of the total corridor is about 14.48 km. The total cost of construction 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 tribunal rejected an application filed by BSE-listed AJR Infra and Tolling Ltd, formerly known as Gammon Infrastructure Projects Ltd.
AJR Infra & Tolling had sought the tribunal’s intervention to direct the lenders to consider its plan for the resolution of RGBL. The company was willing to pay Rs 435 crore for the company.
