Judgment Summaries (NCLT) – In the matter of Kiran Global

  December 22, 2021

In the matter of Kiran Global Chem Limited (Chennai Bench (05.12.2019))

 

Facts

In this case, the RP filed an interlocutory application seeking approval of the Tribunal for the sale of one of the non-core assets of the CD; which would clear its overseas debt and ensure six aircrafts were freed from encumbrances. The RP claimed that the proceeds from the proposed sale would be utilized for clearing the residual dues, which remained payable to Export-Import Bank of The United States (US Exim Bank) for the finance lease created on six aircrafts of the CD; and to release the charge-holder’s security interest created in favour of the non-core asset.

The aircrafts were in the US Exim Bank’s possession. It had agreed that upon payment of USD 13 million, it would transfer the title of the aircrafts to the CD, which would add around USD 200 million to the CD’s estate.

Order

The Tribunal noted that the non-core asset had never been used by the CD as a part of its airline business. That the sale of the said asset would raise vital funds of USD 13 million required for payment to the US Exim Bank, and would unlock the full value of the aircrafts for the estate of the CD.

The Tribunal observed that there was no objection either from any member of the CoC, or from the charge holder of the premises, and that it would add huge value to the CD. Also, that the arrangement would be beneficial to the CD, as well as to all stakeholders. Therefore, considering this, the Tribunal allowed the Applicant to sell the non-core assets, and utilize the proceeds to pay the charge-holder of the assets and to pay the balance sum for settlement of the overseas dues and CIRP costs.

 

Full text of the order accessible here.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Posts

“In adherence to the rules and regulations of Bar Council of India, Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost Accountants of India and any other professional bodies (whether mentioned or not herein), this website has been designed only for the purposes of circulation and exchange of information, and not for advertising.
Your use of ibc16.com’s services are completely at your own risk. Readers and subscribers should seek proper advice from an expert professional before acting on the information mentioned herein. The content on this website is general information and none of the information contained on the website is in the nature of a legal opinion, or otherwise amounts to any legal advice. The user is requested to use their judgment, and exchange of any such information shall be solely at the user’s risk.
ibc16.com does not take responsibility for the actions of any member registered on the site, and is not accountable for any decision taken by the reader based on information/commitment provided by the registered member(s). By clicking ‘ENTER’, the visitor acknowledges that the information provided on the website (a) does not amount to advertising or solicitation, and (b) is meant only for his/her understanding about our activities and who we are.”