The resolution plan for debt-laden Jyoti Structures, which is in power transmission, distribution and EPC projects businesses, has been submitted to the creditors committee which will take a final call on it within a couple of weeks, a source said.
"A group of high net worth investors led by Netmagic founder Sharad Sanghi has finally negotiated the resolution plan with the Committee of Creditors on March 5 at Mumbai," said the source privy to the development.
"The final resolution plan is being circulated to the lenders for their approval and tentatively the Committee of Creditors (CoC) will take a final call on the resolution plan by the third week of March,"
Under the resolution plan, the investors will pay 50 per cent of the total debt over 15 years, the source said, adding that the total dues by the company to the lenders amount to around Rs 7,000 crore.
"Investors have given deep resolution plan for Jyoti Structures to the lenders," the source said.
The net present value of the Jyoti Structures has been worked out at about Rs 1,750 crore, said the source, adding that the investors will pay Rs 200 crore upfront, and change the top management of the company.
Lenders will also be compensated by way of equity with less than 26 per cent, the source said.
Another source said that the "CoC meeting happened on March 5 and lenders discussed the plan.... In the third week (of March) a meeting for final voting of resolution plan has been scheduled."
After the CoC approval the resolution plan will be filed for NCLT approval, the source said.
When contacted Vandana Garg, the interim resolution professional (IRP) of Jyoti Structures refused to comment on the development.
The company was in the first list of 12 firms referred by the Reserve Bank for debt resolution under India's new Insolvency and Bankruptcy Code.
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