Intimation for approval of resolution plan submitted by consortium of Ms. Karishma Jain; M/s Jupiter Developers (I) Limited & M/s Adwaita Navigations Private Limited in respect of XL Energy Limited.
Awaiting price reaction for this filing.
The NCLT Hyderabad Bench has approved a Resolution Plan for XL Energy Limited under Section 31 of the Insolvency and Bankruptcy Code, filed by a consortium of Ms. Karishma Jain, Jupiter City Developers (I) Limited, and Adwaita Navigations Private Limited. The company was admitted into the Corporate Insolvency Resolution Process (CIRP) in March 2023 after a petition by Invent Assets Securitisation. The successful resolution plan offers only Rs. 2.95 crore against total admitted claims of around Rs. 5,404 crore, translating to a recovery of just about 0.04% for financial creditors. Existing borrowings and unclaimed liabilities stand extinguished, and a reconstituted board will take over operations upon implementation.
This is effectively a near-total loss event for existing equity shareholders, who are likely to be completely wiped out with no payout under the plan. Creditors also face a severe haircut of over 99.9%. The stock is likely to face sharp downward pressure or potential delisting once the change in ownership and capital structure is implemented.