Rajahmundry Godavari Bridge Limited (‘RGBL’)
    Rajahmundry Godavari Bridge Limited

RGBL Project involves design, construction, finance, operation and maintenance of a 4.15 kms long four-lane major bridge across river Godavari along with 10.34 kms of total approach roads on either side of the bridge, which connects Kovvur and Rajahmundry in the State of Andhra Pradesh on Build, Operate and Transfer (BOT/Toll) basis.

The client for the project is Andhra Pradesh Road Development Corporation (APRDC).

The concession period for the project is 25 years, including a construction period of three years.

RGBL commenced operations in November 2015 on achieving the Provisional Commercial Operations Date (PCOD).

In July 2018, RGBL had served a notice to APRDC communicating intent of termination of the Concession Agreement (CA) on account of several breaches of the said CA by APRDC.

Union Bank of India (UBI), one of the Lenders for the RGBL Project had initiated and filed an application for Corporate Insolvency Resolution Process against the Company before the Hon’ble National Company Law Tribunal, Mumbai Bench (NCLT).

RGBL served a dispute notice to APRDC and arbitration was invoked against APRDC under the provisions of the CA seeking compensation payment aggregating to Rs.460.06 Crores.

The matter was last listed in February, 2020 for filing Affidavit Evidence of witnesses, which RGBL has filed. Hearings of the Arbitral Tribunal have been cancelled due the CoVID-19 lockdown situation prevailing in the country. Further directions in the above said matter is awaited from the Arbitral Tribunal.

On 31st October, 2018, Canara Bank, Lead Bank of the Consortium of Lenders to RGBL, had invoked pledge of 10,40,19,039 equity shares of Rs.10/- each constituting 51% of the paid up equity capital of RGBL held by AJRITL in RGBL, through the Security Trustee.

Pursuant to agreements between the AJRITL, IFCI Limited (IFCI) and RGBL, AJRITL had paid Rs.30 Crores to IFCI on 31st January, 2020 towards the full and final settlement of total debt due for buyout of 4,99,80,000 equity shares of RGBL and release of pledge created on 3,65,00,000 equity shares of RGBL and 4,60,00,000 equity shares of Sidhi Singrauli Road Project Limited from IFCI.

In accordance with Section 7 of the Insolvency & Bankruptcy Code, 2016, (IBC Code), Corporate Insolvency Resolution Process of RGBL was initiated by the National Company Law Tribunal, Mumbai on 27th February, 2020 and pursuant to Section 17 of the IBC Code, powers of the Board of Directors of RGBL are suspended and vested with Mr. Vishal Ghisulal Jain, Interim Resolution Professional. Subsequently, Mr. Sanjay Mishra was appointed as Resolution Professional in August, 2020.

RGBL is in the process of submitting an application for settlement under Section 12A of the IBC Code.