Sri Adhikari Brothers Digital Network Limited to Merge with Corporate Debtor as Part of Revival Strategy
In a significant development, the National Company Law Tribunal (NCLT), Mumbai Bench, has approved the Pre-Packaged Insolvency Resolution Process (PPIRP) for SAB Events & Governance Now Media Ltd, paving the way for its financial and operational restructuring. The resolution plan, which includes a merger with Sri Adhikari Brothers Digital Network Limited, aims to revive the media company, ensuring its sustainability as a going concern.
The order, passed by the bench comprising Shri Prabhat Kumar, Member (Technical), and Shri Sushil Mahadeorao Kochey, Member (Judicial), highlights the successful approval of the resolution plan by the Committee of Creditors (CoC) with a 100% voting share. The resolution plan, submitted under Section 54K of the Insolvency and Bankruptcy Code, 2016, complies with all relevant provisions and regulations, ensuring the revival of the corporate debtor.
The resolution plan, primarily driven by the Sri Adhikari Brothers Group, outlines various strategic measures, including capital infusion, operational synergies, and the amalgamation with Sri Adhikari Brothers Digital Network Private Limited. The plan promises to unlock potential through shared content libraries, production facilities, and professional management, aiming to restore revenue generation and improve operational efficiency.
Importantly, the plan addresses the financial distress caused by a prolonged revenue decline and the impact of the COVID-19 pandemic on SAB Events & Governance Now Media Ltd, which operates under the brand "Governance Now". The resolution plan ensures full payment to operational creditors and prioritizes the payment of PPIRP costs, reflecting the commercial wisdom of the CoC.
The tribunal's order also provides immunity and protection under Section 32A of the Insolvency and Bankruptcy Code to the resolution applicant and the corporate debtor. The approved resolution plan will bind all stakeholders, including governmental authorities, employees, creditors, and members, ensuring a comprehensive and sustainable resolution.
The tribunal emphasized that the merger of Sri Adhikari Brothers Digital Network Limited into the corporate debtor will achieve consolidation, business synergies, and long-term financial sustainability. Additionally, the resolution plan includes provisions for capital restructuring and the continuation of the corporate debtor's listing on stock exchanges, further enhancing its prospects for a successful turnaround.
With this approval, SAB Events & Governance Now Media Ltd is set to embark on a new chapter, leveraging the strategic measures outlined in the resolution plan to restore its financial health and operational viability.
Bottom line:-
Approval of Pre-Packaged Insolvency Resolution Process (PPIRP) under Section 54K of the Insolvency and Bankruptcy Code, 2016 - Resolution Plan approved by the Committee of Creditors with 100% voting share - Resolution Plan found to be compliant with the provisions of the Code and other applicable regulations, feasible, viable, and in the interest of the Corporate Debtor's revival as a going concern.
Statutory provision(s):
Insolvency and Bankruptcy Code, 2016 Sections 54K, 54L, 30(2), 29A, 31, 54H, 32A
