Operational creditors' dues total Rs 700 crore, including interest component. As per resolution plan before the NCLT, for creditors whose dues are between Rs 1 crore and Rs 5 crore, the proposed settlement amount is 40%. For dues of Rs 5 crore to Rs 10 crore, it is 25% and for over Rs 10 crore, the settlement amount offered is just 5%, he explained. The legal fight of the operational creditors appears to be a long-drawn affair as, apart from specific charges against the insolvency professional, it raises some very fundamental objections to the Insolvency and Bankruptcy Code which, it claims, discriminates operational creditors against banks and other financial creditors. "We also have a long list of charges of negligence (of operational creditors' dues) and twisting of (interpretation) of the IBC law," Tibrewal said.

Source: dna April 11, 2018 00:00 UTC