Lenders take 94% haircut in Synergies insolvency

Synergies-Dooray's acquirer Synergies Castings to pay Rs 54 cr to creditors of dues of Rs 900 cr

The country’s first corporate resolution plan under the new Insolvency and Bankruptcy Code (IBC) has caused a ripple in the banking and finance industry, with the National Company Law Tribunal (NCLT) permitting Synergies-Dooray Automotive to settle a minuscule amount of its liabilities.

Synergies-Dooray Automotive used to manufacture and supply aluminium alloy wheels to global carmakers.

The resolution plan states that the acquirer, Synergies Castings, would pay Rs 54 crore to its creditors of its total dues of over Rs 900 crore, and that, too, at attractive terms. Of the Rs 54 crore, Rs 20-odd crore would be paid upfront and