Omkar Speciality Chemicals Limited has informed the Exchange about Corporate Insolvency Resolution Process
Awaiting price reaction for this filing.
The NCLT Mumbai Bench is hearing the resolution plan for Omkar Speciality Chemicals Limited, which was admitted into CIRP in December 2022. Total admitted financial debt is around Rs. 349.65 crore, with Bank of Baroda holding 82.96% voting share (admitted claim of Rs. 290 crore), NKGSB Co-operative Bank at 12% (Rs. 42 crore), and Axis Bank at 5.04% (Rs. 17.6 crore). The CoC approved the resolution plan submitted by Kshitij Polyline Limited with 82.96% majority, and the plan includes an addendum that distributes the resolution proceeds based on the value of security interest held by each creditor rather than their voting share. This means Bank of Baroda, which holds the first charge on most assets, gets the bulk of the proceeds (around 98.79% share for secured creditors). Axis Bank and NKGSB Bank challenged this distribution, but NCLT dismissed Axis Bank's objection, ruling that the CoC's commercial wisdom on distribution cannot be interfered with as long as dissenting creditors receive at least the liquidation value of their security.
The resolution plan is on track for final NCLT approval, meaning the company's existing shares will likely be extinguished and ownership will transfer to Kshitij Polyline Limited. Existing equity shareholders are likely to face near-total loss, while secured lenders (especially Bank of Baroda) recover a meaningful portion of their dues. The stock may continue to trade thinly as the company undergoes change of management.