Gayatri Projects promoters file plea against liquidation
Promoters of distressed engineering, procurement and construction (EPC) company Gayatri Projects (GPL) made a nearly ₹750 crore offer to creditors seeking to settle dues worth ₹9,115 crore after banks filed for the company's liquidation.
However, a successful outcome is far from easy as any settlement with promoters under Section 12A of Insolvency and Bankruptcy Code (IBC) needs approval from 90% of lenders.
Promoters of Gayatri comprising former Rajya Sabha MP T Subbarami Reddy and his family have filed an intervention petition in National Company Law Tribunal (NCLT), Hyderabad following the liquidation plea by banks as the only bid for the company received so far was below expectation.
«The company has filed a plea against liquidation and is seeking a settlement. The offer is not very different from what lenders got through a bid process but here the promoters have committed to ensure that the bank guarantees associated with this account are not encashed which is a substantial comfort for banks,» said a person aware of the details.
Lenders moved NCLT in January for liquidation, rejecting the sole bid from private equity firm Mark AB Capital Investment offer of ₹650 crore, of which only ₹50 crore was in cash upfront. Of the total dues, more than ₹3,000 crore is linked to guarantees given by the company. These include guarantees for distressed projects being executed by Gayatri like Indore Dewas Tollways and subsidiary Sai Maatarini Tollways though they comprise a smaller portion of bank debt. Both projects have
