BluSmart Insolvency: Vedanta, Jindal, Refex Show Interest In Resolving EV Firm's Debt — Profit Exclusive

Around 15 companies, including Vedanta Ltd., Refex Industries Ltd. and Jindal Power Ltd. have shown interest in resolving the debt and operations of distressed electric vehicle firm BluSmart Electric Mobility as part of its insolvency resolution process, people aware of the matter told NDTV Profit.

While multiple companies initially reviewed the assets of BluSmart, a final list of prospective resolution applicants is now expected to submit resolution plans by early December, one of the abovementioned people explained on the condition of anonymity.

In a corporate insolvency resolution process, a prospective resolution applicant is an entity that expresses interest in submitting a plan to resolve the debts and operations of the distressed company. They are potential candidates who are invited to submit bids to turn the company around, which can involve restructuring, selling assets, or merging it with another entity.

Maruti Suzuki India Ltd. is also said to have shown interest in the Punit Goyal-founded company, but dropped out after a detailed review of the latter's assets, NDTV Profit has learnt. To add some context, the automaker had, earlier this year, updated its memorandum of association in a way that would allow the company to venture into mobility services like vehicle leasing, subscription, shared mobility, used car sales, electric vehicle charging infrastructure among other things.

NDTV Profit has reached out to all companies mentioned in the story.

Nearly 200 applicants had staked claims worth about Rs 500 crore for the assets of BluSmart as part of the ride-hailing firm's insolvency proceedings, NDTV Profit had exclusively reported in August.

Among those who had claimed their share from the company, Catalyst Trusteeship was said to be leading the charge with claims worth up to Rs 250 crore.

Catalyst was the entity whose plea against the EV ride hailing company was admitted by the National Company Law Tribunal of Ahmedabad in late July over a default of around Rs 1.28 crore. The Interim Resolution Professional appointed by the NCLT for BluSmart Mobility was NPV Insolvency Professionals Pvt.

Apart from Catalyst, the Indian Renewable Energy Development Agency has also likely laid claims worth around Rs 130 crore for assets of BluSmart, a second person privy of the matter explained. They did not mention the nature of the assets claimed.

The company law tribunal had earlier admitted separate petitions by IREDA for defaults of Rs 510 crore against Gensol Engineering Ltd. and Rs 219 crore against Gensol EV Lease. According to the government-backed financier's filings, cross-default provisions linked the two entities, which had availed term loans for electric vehicle leasing and infrastructure.