ezeego one travel: NCLT allows extension in the resolution process for Cox and Kings’ affiliate Ezeego One Travel

The bankruptcy court has allowed the exclusion of about 33 days from the corporate insolvency resolution process (CIRP) of Ezeego One Travel and Tours Ltd. and also agreed to extend the process completion deadline by 60 days.

Online travel portal Ezeego One Travel was admitted under the resolution process on March 9, 2021 in a plea filed by its lenders. The company is an affiliate of Cox and Kings Ltd. and owes over Rs 1,078 crore to its lenders.

“This bench considers excluding of time period of 33 days from the CIRP period falling between December 30, 2021 till January 21, 2022, and thereafter extension of the time period for completion of CIRP by a period of 60 days with effect from June 13, 2022,” said the Mumbai-bench of National Company Law Tribunal (NCLT) in its order.

had approached NCLT against Ezeego One Travel after it defaulted on its term loans in April 2019. In 2021, the tribunal admitted the petition and appointed Gaurav Adukia as the company’s resolution professional.

“The resolution process has to be concluded within 270 days (including one extension). However, on account of Covid pandemic and lockdowns, the regulations permit that if the process got affected, then such period can be excluded while calculating the number of days,” said Ashish Pyasi, associate partner Dhir and Dhir Associates. “To conduct the process smoothly for approval of the resolution plan, if the expression of interest is published, then 30 to 75 days is sufficient for the resolution professional and committee of creditors (CoC) to consider and approve.”

Ezeego One Travel, promoted by Ajay Ajit Peter Kerkar and Urshilla Kekar, is under investigation by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).

BSE-listed YES Bank had filed an FIR against Ezeego One Travel for defrauding the bank of over Rs 900 crore. The company’s promoter, Ajay Kerkar is in judicial custody and facing multiple charges of alleged fraud and financial irregularities.

BSE-listed Cox & Kings Ltd was admitted under the CIRP in October 2019. However, in the absence of any viable resolution plan, in December 2021 the tribunal passed an order of liquidation against the company. The company owes over Rs 7,422 crore to its financial and operational creditors.

Separately, in May 2021, the group’s other listed entity, Cox & Kings Financial Services Ltd. (CKFSL), was also admitted under the resolution process in a plea filed by YES Bank. The lender had approached the tribunal after the company defaulted on its dues of over Rs 445 crore.

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