Rashmi Metaliks submits resolution plan for Rolta
Rashmi Metaliks, an iron and steel maker, has submitted a resolution plan for the bankrupt military-focused software exporter Rolta India. It has agreed to pay less than Rolta's liquidation value, and lenders will likely ask the company to revise its offer.
Secured creditors have an exposure of ₹7,086 crore to Rolta. The lenders are scheduled to meet on Wednesday to evaluate the Rashmi offer.
The company was admitted for insolvency proceedings based on an application by Union Bank of India in January.
The committee of creditors (CoC) will meet to discuss the resolution plan and the lenders are going to ask Rashmi Metaliks to improve the offer. «The offer is not too bright and is not above liquidation,» said a source. «Rashmi Metaliks will have the opportunity to revise its resolution plan, and lenders are keen on providing the applicant with another chance to ensure legal compliance.»
While lenders are pursuing in-court resolution, state-owned bad bank NARCL has also offered to acquire the debt of the bankrupt software exporter.
NARCL has offered ₹600 crore to acquire the debt. However, NARCL's offer is in a combination of cash and security receipts where 15% will be paid upfront and the rest through SRs. Lenders may decide to proceed with NARCL's offer and clarity may emerge after the meeting.
The CoC will also explore options to sell assets to recover dues.
