In a landmark order that will cheer lenders pursuing recovery of dues under IBC (Insolvency and Bankruptcy Code), the principal bench of NCLT (National Company Law Tribunal) New Delhi has allowed the acquisition of a Rajasthan-based hotel, which is facing insolvency, by a nonbanking finance company (NBFC) without haircuts to creditors.
In the first resolution plan approved by NCLT after amendments to IBC were made to bar promoters, who are wilful defaulters from bidding for their own company, NBFC JFC Finance (India) said creditors of Hotel Gaudavan Private (HGPL) would be settled in full. JFC would pay Re 1 per share or Rs 17.4 lakh to the promoters who would lose control of the company.
“All payment to financial creditors …
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