13 September 2019: The promoters of Empee Distilleries are drafting a resolution plan to take back the beleaguered Empee Distilleries, months after the resolution professional issued a letter of sanction to the highest bidder SNJ Group.
“Shaji Purushothaman along with Corporate Debtor are preparing a Resolution Plan to be submitted to the CoC (committee of creditors) soon,” the chairman of Empee group, M P Purushothaman informed the stock exchanges in a filling.
The move comes after the National Company Law Appellate Tribunal (NCLAT) disposed off a plea by Shaji Purushothaman (MD of the company) to set aside insolvency proceedings against the company.
The company informed stock exchanges on Thursday that NCLAT has said it was “not inclined to issue any specific directions, [but] give liberty to the Appellant (Purushothaman)” to move an application for settling the claim of creditors under Section 12 (A).
“The CoC may decide as to whether the proposal given by him for settlement in terms of section 12(a) is better than the resolution plan as approved by it and may pass appropriate orders,” NCLAT said in its order dated September 6.
NCLAT said it does not want to express an opinion on the same since the decision lies with the CoC.
The Chennai bench of the National Company Law Tribunal (NCLT) admitted insolvency proceedings against Empee Distilleries in November 2018 pursuant to a case filed by Union Bank of India under Corporate Insolvency Resolution Process (CIRP).
The Resolution Professional had called for bids for the enterprise and awarded the letter of sanction to the highest bidder SNJ Group in July.
Purushothaman moved the NCLT seeking dismissal of the insolvency petition and offered to settle claims of creditors. This application was dismissed by the NCLT, after which he took the petition to the NCLAT.
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