NCLT approves Evonith Holdings' INR-5-bln resolution plan for Topworth Urja
This story was originally published at 19:29 IST on 28 May 2025
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal has approved Evonith Holdings Pvt. Ltd.'s INR 5.02-billion resolution plan for debt-ridden Topworth Urja & Metals Ltd. The tribunal said that Evonith Holdings' resolution plan met the requirements under the Insolvency and Bankruptcy Code, 2016.
Bank of Baroda, along with a consortium of lenders, had granted various credit facilities to Topworth Urja Metals from time to time. In 2015, the facilities granted to Topworth Urja by the bank were restructured on the basis of certain terms and conditions. Subsequently, a master restructuring arrangement was entered into between the bank and Topworth Urja wherein the parties agreed to restructure the debt payable to the former.
In 2016, Bank of Baroda issued a recall notice by which the master restructuring agreement was revoked and Topworth Urja was called upon to pay an amount of INR 1.75 billion. In 2018, the bank filed a petition to start insolvency proceedings against Topworth Urja for non-payment of debt worth INR 2.18 billion. On Aug 12, the tribunal admitted the insolvency petition against Topworth Urja.
Topworth Urja has admitted claims of INR 30.12 billion from outstanding corporate insolvency resolution costs, workmen, employees operational creditors, secured and unsecured financial creditors. The committee of creditors of Topworth Urja includes State Bank of India, Indian Bank, and Bank of Baroda.
On Wednesday, shares of Bank of Baroda ended 0.6% higher at INR 243.03 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Avishek Dutta
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