Sanghvi Forgings ready to pay OTS sum Rs76.16cr to counter Bharat Forge Resolution plan

The erstwhile promoters have filed a writ petition before the High Court of Gujarat against the committee of creditors challenging their decision in approving the resolution plan put forth by Bharat Forge.

May 03, 2021 10:05 IST India Infoline News Service

Sanghvi Movers
Sanghvi Forging & Engineering Limited updated the exchanges Saturday in reference to the approval of the resolution plan put forth by Bharat Forge Limited for the company by the committee of creditors of the company. The erstwhile promoters of the company have challenged the Banks - State Bank of India and Bank of Baroda, members of the committee of creditors which have approved the resolution plan for the company offered by Bharat Forge Limited in Gujarat High Court.

“The resolution plan which is approved by the committee of creditors (COC) of the company does not be primarily considered as the action for delisting of the equity shares of the Corporate Debtor. The approved resolution plan requires performance of specific actions for delisting of equity shares of the company,” company said.

The company further said, the matter is pending before the High Court of Gujarat and next date of hearing is on May 6, 2021. The erstwhile promoters have filed a writ petition before the High Court of Gujarat against the committee of creditors and have challenged the decision of the committee of creditors in approving the resolution plan put forth by Bharat Forge Limited.

The erstwhile promoters have sought relief that the committee of creditors should require to honour the terms of the one-time settlement agreed with by the bankers as the promoters are willing to deposit the outstanding OTS sum which brings the total of Rs76.16cr, which is more than the amount offered by the Bharat Forge Limited.

“It is to bring into your record that the above-stated matter is sub-judice in the Hon'ble High Court of Gujarat and delisting of the equity shares of the Company from the stock exchange can deteriorate the rights of the existing 4100 equity shareholders of the Company while the matter is still sub-judice,” Sanghvi Forgings added.

Sanghvi Forging & Engineering Ltd ended on Friday at Rs16.50 down by Rs0.85 or 4.9% from its previous closing of Rs17.35 on the BSE. It hasn't yet traded on Monday. 

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