Kobo Biotech Limited , a company undergoing Corporate Insolvency Resolution Process (CIRP), has announced key decisions made by its Committee of Creditors (CoC) in their fifth meeting. The CoC, with a significant 98.86% voting share, approved several resolutions that will impact the company's ongoing insolvency proceedings.

Extension of Insolvency Resolution Process

The most notable decision is the approval of a 90-day extension for the Corporate Insolvency Resolution Process. This extension will push the deadline from February 13, 2025, to May 14, 2025. The Resolution Professional is now authorized to file an application for this extension with the National Company Law Tribunal (NCLT) Hyderabad Bench.

Key Approvals and Appointments

The CoC also approved and ratified several other important matters:

1. Expenses incurred by the Resolution Professional up to January 17, 2025, were ratified.
2. Advocate M.S. Mano Ranjani was appointed with fees ranging from Rs. 35,000.00 to Rs. 45,000.00 for filing the extension application.
3. A process advisor will be appointed for the evaluation of resolution plans.

Legal Action and Financial Recovery

In a move to recover funds, the CoC approved legal action against the Commercial Tax Department of Telangana. This action aims to recover Rs. 1.97 crores from asset auction proceeds.

Timeline Extension for Resolution Applicants

The committee ratified the extension of time for Prospective Resolution Applicants to submit resolution plans until February 8, 2025.

Operational Authority

Namrata Randeri, serving as the Resolution Professional, has been authorized to operate bank accounts and execute the approved resolutions.

These decisions reflect the ongoing efforts to navigate the insolvency process and potentially revive Kobo Biotech Limited. The extended timeline and additional approvals suggest a complex resolution process ahead for the company.

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:

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.