Shree Padmanabh Wins NCLT Nod To Acquire RPA Ferro Industries

Shree Padmanabh Ispat Private Ltd. on Wednesday received the National Company Law Tribunal’s (NCLT) approval to acquire the bankrupt RPA Ferro Industries Private Limited.

The Bellary, Karnataka-based iron and coal trader’s resolution plan proposes to pay a total cash consideration of 25.42 crore rupees ($3 million) to RPA Ferro Industries’ stakeholders, according to the NCLT order.

Total admitted claims against the iron casting manufacturer and exporter stood at 111.39 crore rupees, the order showed.

The resolution plan proposes to appoint new directors, namely Polisetty Venkata Srinivas Rao (chairman and managing director) and Chimakurthy Subba Rao, to manage the affairs of the company.

RPA Ferro Industries was admitted into the corporate insolvency resolution process (CIRP) on 15 March 2022 following a petition filed by its financial creditor State Bank of India, and Kumar Rajan was later appointed as resolution professional of the company.

Following the extension of the company’s CIRP period and bidding process, the creditors in March 2023 declared Shree Padmanabh Ispat as the successful resolution applicant.

Rajan later sought the nod from the NCLT for the creditors-approved resolution plan.

The Mumbai bench of the NCLT, comprising Judicial Member Kuldip Kumar Kareer and Technical Member Anuradha Sanjay Bhatia, approved Shree Padmanabh Ispat’s resolution plan on 12 July.

Note: $1 = 82.1814 Indian rupees

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