Vasan Health creditors move NCLT seeking adjudication – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com

A batch of 10 unsecured financial creditors, presumably private financiers of Vasan Health Care, have moved the National Company Law Tribunal seeking adjudication of their claims. According to Vasan Health Care’s list of financial creditors, the total outstanding claims to banks, financial institutions and Asset Reconstruction Company Edelweiss is to the tune of ₹1,268 crore.

This development comes at a time when the voting share of the Committee of Creditors (COC) is pending adjudication due to several applications, claims and counterclaims. This batch of application filed today is one among them, said sources.

Voting share

The COC, which manages the corporate debtor during the corporate insolvency resolution process through resolution professionals, has been constituted. However, it is reliably understood thatthe voting share of these CoC members is not clear. This has acted as a hindrance in finding suitable investors or resolution applicants for the company’s clinics and its future, the source said.

In 2017, NCLT Chennai ordered insolvency proceedings to be commenced against Vasan Healthcare based on a petition filed by one of its suppliers – Alcon Laboratories (India) Pvt Ltd.

Last October, a Division Bench of the Madras High Court allowed insolvency resolution for Vasan Healthcare. This was nearly two years after the proceedings were stayed by a single Judge order on whether insolvency and bankruptcy proceedings can continue in the wake of winding up procedure at the High Court.

However, insolvency resolution professional V Mahesh then moved the NCLT based on the High Court order, and obtained an order to revive the corporate insolvency resolution process.

Sources said that Vasan continues to operate with almost 100 centres, most of which have resumed business after the lifting of lockdown, the source added.

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