NCLT approves Morarjee Textiles resolution plan
Morarjee Textiles creditors are bound to the NCLT-approved INR 156 crore resolution plan
IBBI
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Change
NCLT Mumbai approved Shrinivas Spintex Industries Private Limited’s resolution plan for Morarjee Textiles Limited after CoC approval by 75.61% voting share.
Why it matters
The order converts the CoC-approved plan into the binding insolvency outcome for Morarjee Textiles. Creditors, the resolution professional and the successful resolution applicant must now follow the approved implementation structure, payment schedule and transfer-of-control mechanics under the IBC framework.
Implications
- — Morarjee Textiles’ resolution professional must implement the approved resolution plan through the Implementation and Monitoring Committee.
- — Shrinivas Spintex Industries Private Limited must fund and execute the INR 156 crore resolution plan according to the approved payment and control-transfer schedule.
- — Financial creditors and operational creditors of Morarjee Textiles must accept recoveries according to the NCLT-approved resolution plan rather than pursue separate recovery outside the approved IBC process.
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