The National Company Law Tribunal (NCLT) has approved the resolution plan submitted by Jupiter Wagons Ltd for ailing Stone India Ltd.
The Calcutta bench of the tribunal approved the Rs 20.61 crore plan of Jupiter Wagons which translates to 29.51 per cent recovery for the creditor of Stone India which used to make parts for the railway industry.
Once part of the Duncan Goenka Group, the company was admitted for the corporate insolvency resolution process (CIRP) on November 9, 2021, following an application by ICICI Bank.
It had received three resolution plans from companies namely, Jupiter Wagons Ltd, GS Global Projects Pvt Ltd and Lal Baba Seamless Tubes Private Ltd. The panel ofcreditors picked the plan of Jupiter with 100 per cent voting share.
The financial creditors would get Rs 15.29 crore as against their admitted claim of Rs 51.81 crore. Apart from paying off the creditors, the resolution applicant also proposed to invest Rs 25 crore in Stone India as capital expenditure, modernisation and working capital.
It is likely that Jupiter Wagons would be able to resume Jupiter Wagons operations in next six months.