The bankruptcy court in Indore has rejected the revival plan for listed energy company Ujaas Energy, with the observation that the Committee of Creditors (CoC) cannot extinguish the right of the secured creditor to proceed against the company’s personal guarantor. The ruling will set a precedent for lenders in other cases where dissenting secured creditors are seeking to proceed separately against the promoters with regard to their personal guarantees under the Insolvency & Bankruptcy Code (IBC), said experts.
“The CoC can take any commercial decision relating to insolvency of the corporate debtor only, the CoC cannot extinguish the right of the particular secured creditor to proceed against the personal guarantor of the corporate debtor…
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