Khaitan & Co. Advises Resolution Professional Of Era Infra Engineering

Khaitan & Co. LLP advised the resolution professional of Era Infra Engineering Limited (“Company”) during its corporate insolvency resolution process (“CIRP”) which commenced on 8 May 2018. The Company was included in Reserve Bank’s list of ‘dirty dozen’ companies to be mandatorily admitted into CIRP under the Insolvency and Bankruptcy Code, 2016 (“Code”). The CIRP of the Company faced multiple bottlenecks due to clarifications being sought on the consolidation of the Company with its interlinked special purpose vehicles, pendency of multiple high value disputes, assets being impounded/seized under Income Tax Act, 1961 and Prevention of Money Laundering Act, 2002.

Applications with respect to the aforesaid were time and again made before the Adjudicating Authority, who through its orders repeatedly interpretated the various provisions of the Code. The resolution plan for the Company has thereafter been approved by the Adjudicating Authority vide order dated 11 June 2024. The approval of the plan for resolution of Era Infra marks the settlement of outstanding debt to the tune of INR 22,200 Crores placing this amongst one of biggest and longest running CIRP to have been successfully resolved.

The Firm advised the resolution professional in the CIRP of the Company since its commencement and had the opportunity of advising on one of the early big ticket CIRPs which helped clarify various aspects related to the Code and played a significant part in the IBC jurisprudence which has since evolved significantly. We are pleased to have witnessed the Code grow and shape into the path breaking and revolutionary law it is today.

With the passing of the successful resolution plan for the Company, resolution for one of the last remaining dirty dozen company ends.

The deal was led by Dr. Siddharth Srivastava (Partner, Restructuring & Insolvency/ Banking & Finance), Mohit Kishore (Counsel) and Udita Singh (Senior Associate).

The litigation support for the deal was provided by Ajay Bhargava (Partner, Litigation),  Wamika Trehan (Counsel) Shivank Diddi (Principal Associate) and Siddhant Kumar (Senior Associate).

With the passing of the successful resolution plan for the Company, resolution for one of the last remaining dirty dozen company ends.