NCLT approves Cochin Shipyard's resolution plan for Tebma Shipyards

Banks to take huge haircuts as the plan proposes to pay only 9.74 per cent of the total admitted Rs 602 crore debt

The Chennai Bench of National Company Law Tribunal (NCLT) has approved the resolution plan of Cochin Shipyard (CSL) for Chennai-based shipbuilding firm Tebma Shipyards (TSL) under Corporate Insolvency Resolution Process (CIRP). 

Lenders will be taking a huge haircut since the CSL has proposed to pay only 9.74 per cent of the admitted debt of TSL, which stood at Rs 602.39 crore.

Jotun India, in the capacity as an operational creditor, had filed an application under Section 9 of IBC, 2016, against the corporate debtor Tebma Shipyard. The NCLT, through an order in September 2018, admitted the application and initiated CIRP as against