NewsCorporate ActionsKobo Biotech Limited's Committee of Creditors Approves Multiple Resolutions, Including CIRP Extension and Professional FeesKobo Biotech Limited's Committee of Creditors Approves Multiple Resolutions, Including CIRP Extension and Professional Fees
Kobo Biotech Limited's Committee of Creditors (CoC) has approved several crucial resolutions in its ongoing Corporate Insolvency Resolution Process (CIRP). Key developments include the approval of CVK Technologies Private Limited's resolution plan, extension of CIRP period until January 29, and further extension for submission of resolution plans until April 15, 2025. The CoC also approved Resolution Professional fees, ratified various professional fees, and authorized the forfeiture of a Rs. 1.05 crore deposit from a previous applicant. JM Financial Asset Reconstruction Company Limited holds a 99.12% voting share in the CoC.
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Kobo Biotech Limited , a company undergoing Corporate Insolvency Resolution Process (CIRP), has seen significant developments in its restructuring efforts. The company's Committee of Creditors (CoC) held several meetings, including a recent sixth meeting, approving a series of important resolutions.
Key Approvals
The CoC meetings resulted in several key approvals:
Resolution Plan Approval
In the Twelfth Meeting, the CoC approved CVK Technologies Private Limited's resolution plan with 100% voting share, while rejecting plans from four other applicants.
CIRP Extension
The Fifteenth Meeting approved a 90-day extension beyond the current 435-day period, extending the CIRP from October 31 to January 29. Additionally, in the most recent meeting, the committee ratified the extension of time until April 15, 2025 for Prospective Resolution Applicants to submit resolution plans with 99.12% approval.
Performance Bank Guarantee
The Thirteenth Meeting unanimously approved a 21-day extension for the successful resolution applicant to submit Performance Bank Guarantee from July 29.
Resolution Professional Fees and Costs
The CoC approved Resolution Professional fees of 1.50% of secured financial creditor payouts. In the recent sixth meeting, the committee approved costs incurred by Resolution Professional Namrata Randeri from the last meeting with 99.12% voting share, authorizing her to operate bank accounts and manage expenses.
Professional Fees Ratification
The committee ratified professional fees totaling Rs. 95,500 with 100% approval, including:
| Purpose | Amount (Rs.) |
|---|---|
| Re-filing applications against tax departments | 15,000 |
| Land document procurement | 40,000 |
| Solapur factory maintenance | 80,500 |
| Additional fees for land building valuation updates | 20,000 |
Forfeiture of Deposit
In the Fourteenth Meeting, the CoC approved the forfeiture of Rs. 1.05 crore deposited by the previous Successful Resolution Applicant due to non-submission of the Performance Bank Guarantee.
Resolution Plan Process
The Fifteenth Meeting approved the Request for Resolution Plan (RFRP) and Bid Evaluation Matrix for consideration of Resolution Plan(s).
Creditor List Update
The CoC approved the inclusion of a Rs. 72.55 lakh claim from Maharashtra GST Department in the creditor list.
Financial Creditors
JM Financial Asset Reconstruction Company Limited holds a dominant position in the CoC with a 99.12% voting share.
Conclusion
These developments indicate that Kobo Biotech Limited's insolvency resolution process is progressing, with the CoC taking active steps to facilitate the resolution. The extension of the CIRP period, approval of a resolution plan, and ratification of various professional fees and costs suggest that the committee is working towards finding a viable solution for the company's financial situation.
Investors and stakeholders should note that the insolvency resolution process is ongoing, and the final outcome remains to be determined. The company's future will depend on the successful implementation of the approved resolution plan and any further decisions made by the CoC.
