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Guarantors' plan for Pradip Overseas gets NCLT nod

Economic Times  

A bankruptcy court in Ahmedabad has approved a common repayment plan submitted by the personal guarantors of Pradip Overseas. It has also directed that, on the full implementation of the repayment plan, the personal guarantees given by all the guarantors be released.The ruling is expected to set a precedent for promoters of bankrupt companies who are facing proceedings under the Insolvency and Bankruptcy Code (IBC), being joint personal guarantors or having common assets. The National Company Law Tribunal (NCLT) while approving the repayment plan, also observed that the creditors shall withdraw all the legal proceedings before various fora against the debtor within one month of the fulfilment of repayment obligations.