XL Energy Limited has informed the Exchange about Corporate Insolvency Resolution Process
Awaiting price reaction for this filing.
The NCLT Hyderabad Bench has approved the Resolution Plan for XL Energy Limited under Section 31 of the Insolvency and Bankruptcy Code, 2016, on 19.04.2024. The plan was submitted by a consortium of Karishma Jain, Jupiter City Developers (I) Limited, and Adwaita Navigations Private Limited, and was approved by the Committee of Creditors with 73.78% voting share. Total admitted financial claims stood at approximately Rs. 5,404 crores, but the approved resolution plan provides for a total payout of only Rs. 2.95 crores — a near-total haircut for creditors. Secured financial creditors (mainly banks led by Invent Assets with 70.33% voting share) will receive Rs. 1.85 crores, unsecured creditors Rs. 10,000, and EPFO/operational creditors around Rs. 35 lakhs. The plan is to be funded by Rs. 1.52 crores of fresh equity infusion and Rs. 1.18 crores from debt assignment, with the moratorium under Section 14 now ceasing to apply. Existing shareholders are likely to face significant dilution as the new management takes control of the company.
Shareholders are likely to see heavy dilution due to fresh equity infusion by the new promoters, and the stock could remain volatile as the company transitions out of insolvency. Creditors are taking a near-total haircut (pennies on the rupee), reflecting the company's poor financial condition. Existing equity investors should expect a major change in the company's ownership structure and business direction going forward.