US-based electric vehicle manufacturer Triton had offered Rs 210 crore in cash to creditors of AMW Motors, a significant haircut to lenders who have total admitted claims of Rs 4,195 crore.
“Triton Electric Vehicle has failed to fund and implement the resolution plan and has thus contravened the resolution plan,” the division bench of judicial member Shammi Khan and technical member Ajai Das Mehrotra observed in its order of July 27. “We are of the view that the present (liquidation) application deserves to be allowed.”
Originally, the Ahmedabad bench of NCLT admitted the company under the Corporate Insolvency Resolution Process on September 1, 2020, in an application filed by one of its financial creditors, Indian Overseas Bank.However, in the absence of any viable resolution plan, the committee of creditors (CoC) approached the tribunal through RP to admit the company under liquidation on September 20, 2021.
Interestingly, during the pendency of the liquidation application, Triton Electric Vehicle LLC sought the tribunal’s permission to submit a resolution plan for AMW Motors.
Subsequently, Triton’s plan was approved by the lenders with a 99.6% voting share in its favour and the tribunal also approved the same on December 22, 2022.