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Chairman R Sarabeswar, managing director S Sivaramakrishnan and director of operations VG Janarthanam are designated as promoters on the company’s website.
EPC company CCCL’s promoters have proposed to pay ₹175 crore in cash upfront and another ₹165 crore to make good any invocation of bank guarantee or from future proceeds of any arbitration from the government.
The ₹340-crore offer by the promoters, under Section 12A of the Insolvency and Bankruptcy Code (IBC), amounts to a 13% recovery for lenders on dues of ₹2,693 crore. But it is a better alternative to liquidation and is also higher than the ₹130 crore cash offered by the government-backed National Asset Reconstruction Co (NARCL) in December 2022.
How the promoters are funding this deal is unclear, although people familiar with the matter said they have the backing of an investor.
“The promoter has already deposited ₹135 crore with the lead lender and now has 15 days to deposit the remaining ₹40 crore upfront amount. He has also promised to return the ₹85 crore of bank guarantees within three years and give another ₹80 crore from receivables from arbitration claims within seven years,” said a person aware of the details.
In its order, the National Company Law Appellate Tribunal (NCLAT) acknowledged that the committee of creditors (CoC) had approved the settlement with 95.34% votes. It set aside the liquidation order passed in May and directed the resolution professional to take final steps to withdraw the application from the Chennai NCLT. Bankers said the offer under Section 12 A was the best on the table and takes care of any issues with regard to settlement with the promoter because it’s a process overseen by the court.
Lead lender State Bank of India did not reply to an email seeking comments. Bank of Baroda, ICICI Bank and IDBI Bank are the other creditors. CCCL could not be immediately reached for comment.
The promoter offer is the climax of a one-year-old process, which started after the NARCL made a ₹60 crore offer in August last year.
The bad bank hiked its offer to ₹100 crore subsequently after protests by bankers, but it was topped the ₹130 crore offer by Gujarat-based NBFC Raj Radhe Finance in a Swiss challenge in November.
NARCL agreed to match Raj Radhe’s offer in December 2022 but promoters stepped in with their own improved offer in January 2023.
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