JK Paper today said the NCLT has approved its Rs 371 crore bid for debt-ridden Sirpur Paper Mills under the insolvency resolution process.
The Hyderabad bench of the National Company Law Tribunal (NCLT) today admitted the resolution plan submitted by JK Paper, the company said in a regulatory filing.
"Hyderabad Bench of NCLT has on July 19, 2018, approved the Resolution Plan submitted by JK Paper for acquisition of the Sirpur Paper Mills Ltd (SMPL) under the Corporate lnsolvency Resolution Process," JK Paper said in a BSE filing.
The resolution plan, as approved by the NCLT, is binding on JK Paper, SPML, its employees, members, creditors, guarantors and all other stakeholders involved, as per the provisions of the lnsolvency and Bankruptcy Code, it added.
"In terms of the Resolution Plan, Rs. 371 crore will be paid towards settlement of financial creditors, corporate insolvency resolution process cost, admitted operational creditors, workmen and employee dues, etc, as per the terms of the Resolution Plan," JK Paper added.
This consists of cash payment of Rs 166 crore and issue of securities of Rs 205 crore by SPML.
"The Company intends to make this investment through itself and/or its eligible subsidiaries," it added.
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