Orient Green Power Company Ltd updates on OTS of subsidiary

Orient Green Power Company Limited has received an order dated June 04, 2024 passed by the Hon'ble National Company Law Tribunal, Mumbai approving the One Time Settlement(OTS) agreed between the company and IL&FS Financial Services Limited(IL&FS) for loan availed by one of the subsidiaries of the company, M/s. Amrit Environmental Technologies Private Limited (AETPL). The details are given under;

Reasons for opting OTS with lender

One of our Subsidiaries, Amrit Environmental Technologies Private Limited(AETPL) was engaged in the business of generation and sale of power from biomass. AETPL availed a term loan of Rs. 3,900 lakhs from IL&FS Financial Services Limited(IL&FS) to which our company has extended a corporate guarantee. AETPL halted its business operations due to the increase in fuel prices causing its business to become unviable. Consequently, AETPL defaulted the loan outstanding of Rs. 2,652 lakhs payable in June 2019. IL&FS approached the National Company Law Tribunal, Chennai ("NCLT") against the Company for recovering the dues.

Our Company had submitted a One Time Settlement(OTS) proposal with IL&FS for repayment of the Loan and the same was recommended by IL&FS and filed before NCLT. Pursuant to an order dated October 18, 2022 passed by the NCLT, the insolvency proceedings filed against the company by IL&FS were disposed off on account of finalization of OTS between our Company and IL&FS.

Brief Summary of OTS

The settlement terms agreed upon were that a settlement amount of ₹ 3,000 lakhs against all outstanding dues was to be paid by our Company, in the following manner: (i) ₹ 800 lakhs to be paid down within 15 days from the date of receipt of sanction letter at acceptable terms; and (ii) the balance ₹ 2,200 lakhs to be paid within next seven months. Upon payment of the aforementioned settlement amount, IL&FS had agreed to waive all remaining dues including present and future interest dues and accordingly issue a no dues certificate.

The OTS required the approval from NCLT, Mumbai, where the resolution proceedings of IL&FS are underway. The NCLT, Mumbai vide its order dated June 04, 2024 approved the OTS.

The Company vide Letter of Offer dated August 10, 2023 collected Rs. 23,000 lakhs through Rights Issue of equity shares. Out of the issue proceeds, Rs. 1,500 lakhs were towards the part payment of dues payable to IL&FS under OTS agreed. The Remaining dues shall be paid from disposal of AETPL and internal accruals.

Shares of Orient Green Power Company Limited was last trading in BSE at Rs. 19.81 as compared to the previous close of Rs. 19.76. The total number of shares traded during the day was 1095369 in over 4123 trades.

The stock hit an intraday high of Rs. 20.19 and intraday low of 19.75. The net turnover during the day was Rs. 21812872.00.

Source : Equity Bulls

Keywords

OrientGreenPowerCompany INE999K01014 NCLTOrder OTS Subsidiary AmritEnvironmentalTechnologies