Outcome of the 4th CoC Meeting held on 13-01-2025
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Kobo Biotech, currently undergoing Corporate Insolvency Resolution Process (CIRP), disclosed the outcome of its Fifth CoC meeting held on 27 January 2025. All resolutions were approved with 98.86% voting share. Key decisions included ratifying costs incurred by the previous Resolution Professional, approving a 90-day extension of the CIRP timeline (from 13 Feb 2025 to 14 May 2025) under Section 12(2) of the IBC, extending the deadline for Prospective Resolution Applicants to submit resolution plans until 8 Feb 2025, and appointing advocates and a process advisor. The CoC also approved legal action against the Telangana Commercial Tax Department to recover Rs 1.97 crore in auction proceeds and clear encumbrances on the company's land.
The 90-day extension signals that the resolution process is taking longer than expected and no resolution plan has been finalised yet. For shareholders, this continues to indicate the equity remains at high risk of dilution or extinguishment under a resolution plan. The legal recovery of Rs 1.97 crore from the tax department could marginally improve the asset pool available to creditors if successful.