VXL Instruments, currently in CIRP, reports a procedural hurdle regarding the merger structure with its Successful Resolution Applicant, NG Organics. While the applicant has fully funded the resolution consideration, the company has filed for NCLT approval to modify specific clauses. Operations remain under the Monitoring Committee as investors await further court directives.
VXL Instruments Resolution Plan Hits Procedural Hurdle
Procedural constraints in the merger structure have led to a filing under Section 60(5) of the IBC.
The Successful Resolution Applicant, NG Organics, has already fully funded the consideration for the resolution plan.
Reader Takeaway: Resolution plan implementation faces procedural delays; commercial terms remain intact and fully funded by the applicant.
What just happened
VXL Instruments Limited, which is currently undergoing a Corporate Insolvency Resolution Process (CIRP), has hit a procedural snag regarding its approved resolution plan. The NCLT Mumbai Bench-I had approved the plan on September 09, 2026. However, a specific directive in the order required the merger of NG Organics Private Limited—the Successful Resolution Applicant (SRA)—with VXL Instruments to follow standard procedures under the Companies Act, 2013. This requirement made the original implementation clauses regarding the merger practically inoperable.
Why this matters
The company has filed an application under Section 60(5) of the Insolvency and Bankruptcy Code (IBC) to seek the NCLT's approval for modified clauses. This filing is necessary to ensure the resolution plan can be implemented without violating the merger structure directives. For shareholders and creditors, the primary concern is the continuity of the resolution process. The company has clarified that the proposed changes are strictly procedural and do not alter the financial or commercial terms previously approved by the Committee of Creditors.
Financial and Management Status
Importantly, the SRA has demonstrated commitment by already funding the entire consideration contemplated in the approved resolution plan. Until the NCLT provides the necessary directions regarding the modified clauses, the management of the company will continue to remain under the supervision of the Monitoring Committee.
What to track next
Investors should closely monitor future NCLT hearings for the disposal of the Section 60(5) application. The court's order will dictate the final framework for the merger and the subsequent transition of control from the Monitoring Committee to the new management under NG Organics.