Enn Tee International Limited

Total plan funding, as printed

Total value of the Resolution Plan is Rs. 17,19,00,000/- (Rupees Seventeen Crores Nineteen Lakhs only)

Deferred amount, as printed

Payment to Operational Creditors and to Secured Financial Creditors and Operational Creditors both scheduled at T+3 Years per the Implementation Schedule

Payout horizon as printed

Unpaid PPIRP/CIRP cost: T+30; Payment to Operational Creditors: T+3 Years; Change in MOA/AOA if required: T+30; Remittance of share application money into settlement account: T+180; Payment to Secured Financial Creditors and Operational Creditors: T+3 Years

Plan term as printed

From the Effective Date until fulfilment of the actions set out in the Plan; inferred by the Tribunal to be 3 years since all payments to secured financial and operational creditors are made within 3 years

CIRP cost, as printed

Rs. 6,00,000 (estimated costs)

Cirp cost treatment

To be paid first from the available cash balance of the Company and then, if any shortfall, from contribution by the promoter of the Company, up to Rs.6.00 lakh, in priority to payment of any other debts of the Corporate Debtor; if the unpaid amount exceeds Rs.6.00 lakh it will be borne by the company/resolution applicant

Performance security

Performance guarantee to the tune of Rs. 20 lakhs, agreed by the Directors of the CD during the 3rd CoC meeting based on commercial and other aspects

Performance security instrument

other

Units note

Sources/Application of Funds table at para 7.1 is stated partly in Crores (Sources of Funds table) and the Application of Funds table in Lakhs; the stakeholder payout table at para 5.1 is stated in absolute Rupees

Sources/Application of Funds table at para 7.1 is stated partly in Crores (Sources of Funds table) and the Application of Funds table in Lakhs; the stakeholder payout table at para 5.1 is stated in absolute Rupees

Body of order · 6 rows

1. Seq

   1

   Beneficiary

   Approval of Resolution Plan by NCLT (Effective Date)

   Timing as printed

   T

2. Seq

   2

   Beneficiary

   Appointment of Monitoring Committee

   Timing as printed

   T+5

3. Seq

   3

   Beneficiary

   Payment of Unpaid CIRP/PPIRP cost

   Amount as printed

   Rs. 6,00,000

   Timing as printed

   T+30

4. Seq

   4

   Beneficiary

   Payment to Operational Creditors

   Amount as printed

   Rs.383.94 lakh aggregate

   Timing as printed

   T + 3 Years

5. Seq

   5

   Beneficiary

   Change in Memorandum and Articles of Association etc., if required

   Timing as printed

   T + 30

6. Seq

   6

   Beneficiary

   Remittance of share application money into settlement account

   Timing as printed

   T + 180

7. Seq

   7

   Beneficiary

   Payment to Secured Financial Creditors and Operational Creditors

   Timing as printed

   T + 3 Years

Entity type

company

Promoter / former management

Yes

Sources of funds

Total fund requirement of Rs. 10.19 crore over 3 years towards interest-bearing loan, working capital term loan, capital expenditure, operational creditor payment and working capital; funds infused by related parties as unsecured loan (Rs.1.25 Cr total: Year-1 Rs.1.00 Cr, Year-2 Rs.0.25 Cr); funds infused by RA as quasi capital (Rs.0.75 Cr, Year-1); Sale of Old Machines Rs.0.90 Cr; Sale of Surplus Land Rs.3.50 Cr; Cash Accrual Rs.3.7921 Cr over 3 years (Year-1 1.0535, Year-2 1.3693, Year-3 1.3693); Total sources Rs.10.1921 Cr

Post plan management

Management of the Company, which remained with the existing management working alongside the Resolution Professional during the PPIRP, would vest back in the Company after Plan approval

Statutory dues

Government Dues (within Operational Creditors): admitted Rs.57,00,000; full payment proposed per Clause 6.2.1(ii) of the Resolution Plan

Operational creditors

Aggregate Operational Creditors Settlement Amount of Rs.383.94 lakh (Clause 5.4(b)), given priority over financial creditors, to be repaid over 3 years without interest from the date of Plan approval; breakdown: Government Dues Rs.57,00,000 (full payment), Employees and Workmen Rs.8,74,000 (full payment), Other Unrelated Operational Creditors Rs.3,26,89,000 (full payment); Related Creditors receive Nil payment

Workmen employees

Employees and Workmen dues of Rs.8,74,000; full payment proposed per Clause 6.3(ii) of the Resolution Plan

Guarantors

ECLGS Loan of Rs.2,50,00,000 (Covid-related Government Scheme) proposed for 100% recovery against the Guaranteed Emergency Credit Line (GECL) Term Loan via claim to the National Credit Guarantee Trustee Company (NCGTC), the guarantor under the scheme

Litigation carveout

All inquiries/investigations/proceedings/suits/claims relating to any period prior to the plan approval date, or arising from Plan implementation, to stand withdrawn/satisfied/discharged from the approval date (para 11)

Assets description

Manufacturing and supply of Polyester and Polypropylene Dope Dyed Yarn and narrow fabric, sold under the brand 'Minklene'; unit partially operational; registered MSME; converting partial plant capacity to polyester yarn with an investment of about Rs.1.61 Crore; other machines upgraded, doubling production capacity

Going concern status

Company to continue operations; capital expenditure of Rs.1.25 Crores planned for overhauling/replacement of machinery and restarting closed machines

Interim resolution professional

Ms. Ritu Rastogi

RP replaced the IRP

No

Applicants considered

1. Name

   Enn Tee International Limited, through its Promoter/Directors (Mr. Harish Chander)

   Stage reached

   approved

   Plan value as printed

   Rs. 17,19,00,000/- total Resolution Plan value

   Vote pct

   100%

   Outcome note

   Base Resolution Plan under PPIRP approved by the CoC (5th meeting, 18.05.2023) with 100% voting share (sole Financial Creditor SBI); approved by NCLT

Bidding mechanism

single plan

Clock events

1. Kind

   extension

   Reason

   4th CoC meeting (17.03.2023): sole CoC member SBI approved a resolution seeking extension of time from the Adjudicating Authority; extension quantum not stated in this order

Advisors

1. Role

   valuer

   Note

   Valuers appointed; report received by the 2nd CoC meeting (17.12.2022); Liquidation value Rs.10.20 Cr, Fair value Rs.14.57 Cr

2. Role

   transaction auditor

   Note

   Appointed (2nd CoC meeting, 17.12.2022) to check for avoidable transactions; RP's affidavit dated 29.08.2023 states no transactions were found under Sections 43, 45, 50 and 66 of the Code

1. Creditor

   State Bank of India

   Creditor class

   sole Financial Creditor

   Voting pct

   100%

   Vote

   for

   Claim admitted as printed

   Rs. 11,95,99,960/- claim filed; voting table (5th CoC meeting) records voting share of Rs.11.96 Crores at 100%

Dissenting fc treatment

"N/A as in the present case only one financial creditor i.e. State Bank of India and base plan has been approved by SBI at the time of giving consent for filing the present application." (Regulation 45(5)(b) compliance table)

Effective date definition

The date on which this Adjudicating Authority approves the Resolution Plan (per the Resolution Plan's definition, para 7.2)

Monitoring committee

On and from the Effective Date until the Closing Date, a Monitoring Committee shall be constituted for the Company, comprising the Resolution Professional, one representative of the CoC, and one representative of the Resolution Applicant/Corporate Debtor; it shall supervise implementation of the Plan

Monitoring committee members

1. Name

   Ms. Ritu Rastogi

   Role

   Resolution Professional

2. Role

   one representative of the CoC

3. Role

   one representative of the Resolution Applicant/Corporate Debtor

1. Seq

   1

   Relief

   From the plan approval date, all inquiries, investigations and proceedings (civil or criminal), suits, claims, disputes, interests and damages in connection with the Corporate Debtor or its affairs, pending or threatened, present or future, relating to any period prior to the plan approval date or arising from implementation of the Plan, shall stand withdrawn, satisfied and discharged; SRA authorized to seek appropriate orders from authorities/courts/tribunals for renewal of licenses/withdrawal/dismissal/abatement of proceedings as per law

   Category

   litigation_immunity

   Disposition

   granted

   Reason

   The Resolution Plan is hereby approved (para 12.6) and forms part of the Order, binding on the Corporate Debtor and other stakeholders (paras 12.6-12.7); no specific denial or modification of this relief clause is recorded in the findings

Transaction audit findings

Affidavit dated 29.08.2023 filed by the Resolution Professional states that no transactions were found by the RP under Sections 43, 45, 50 and 66 of the Code; a transaction auditor had been appointed (2nd CoC meeting, 17.12.2022) to check for avoidable transactions

Conditions imposed

1. Condition

   Resolution Plan approved subject to the observations made in the Order regarding delay caused by the Bank's internal handling of the proposal (paras 12.1-12.5)

   Addressed to

   Banks / IBBI / MCA

Judicial observations

1. "It was pointed out that immediately on admission, the matter should have gone to the Stressed Assets Wing of the concerned Bank, whereas it went to the Branch, and it took some time before it got transferred to the Stressed Assets Wing of the Bank... The inter-branch discussion on the proposal consumed a lot of time." (p.25)
2. "Keeping this in mind, we would like to suggest that the moment an application under Section 54(C) is filed, the Stressed Assets Wing of the concerned Bank should take over the case for further negotiation to avoid delay and keep up the timelines." (p.26)
3. "We also impress upon the Stressed Assets Wing of the Bank to ensure speedy negotiations of the proposal so that valuable time is not lost." (p.26)

Directives to third parties

Registry directed to send copies of the order to IBBI and MCA to take into consideration the Tribunal's observations at paras 12.1-12.5 and to ensure that all Banks comply, taking appropriate steps so that Pre-Pack becomes an effective method of resolution

Companies named in the order

1. ENN TEE International Limited

CIN printed in the order

U18101DL1999PLC098394

Order date

2023-10-19