Let There be Light
The Synergies Dooray Automotive case, the first in which a resolution plan has been approved under the new insolvency law, had all the elements of surprise, drama and confusion. This Visakhapatnam based maker of automotive parts, garage and service station equipment owed Rs 972 crore to Edelweiss ARC, Alchemist ARC, Millennium Finance and Synergies Castings. The case first made headlines for creditors taking a haircut of more than 94 per cent as part of the debt recast. But there was more drama in store, when one of the financial creditors Edelweiss ARC moved the National Company Law Appellate Tribunal (NCLAT) against the National Company
Law Board's (NCLT's) decision accepting the debt recast plan. It requested the NCLAT to scrap the plan, which was approved by 90 per cent financial creditors, alleging that Synergies Casting, being a related party, did not have a voting right but transferred 93 per cent of its debt to Millennium Finance to reduce its (Edelweiss') voting share
