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    Yashomati Hospitals becomes third-party litigation funding startup LegalPay’s first exit

    Synopsis

    The Bengaluru bench of the National Company Law Tribunal (NCLT) approved the resolution for the Bengaluru-based Yashomati Hospitals where the financial lenders had approved the plan submitted by Chennai-based hospital chain Sri Kauvery Medical.

    Yashomati HospitalsAP
    Yashomati Hospitals becomes third-party litigation funding startup LegalPay’s first exit
    The dedicated bankruptcy court’s approval for the revival plan submitted by Sri Kauvery Medical Care (India) Ltd for the Bengaluru-based Yashomati Hospitals Pvt Ltd (YHPL) becomes the first case of the third-party funding exit under the Insolvency & Bankruptcy Code (IBC) in the country.

    The Bengaluru bench of the National Company Law Tribunal (NCLT) approved the resolution for the Bengaluru-based Yashomati Hospitals where the financial lenders had approved the plan submitted by Chennai-based hospital chain Sri Kauvery Medical Care with 100% voting.

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    The third-party litigation funding startup LegalPay got its first exit within nine months of its investments as the tribunal approved the resolution plan with over 26% return.

    Last year in October, Ravindra Beleyur, resolution professional (RP) of Yashomati Hospitals raised an undisclosed amount from LegalPay to run the company as a going concern until the hospital found a new promoter through the insolvency process.

    “The successful resolution of Yashomati Hospitals has established a landmark poster image that operational excellence can also be achieved during this period through third-party interim funding kicking in at the right moment and at reasonable interest rates,” said Kundan Shahi, chief executive of LegalPay. “We are inclined to organise and make the entire insolvency and legal process efficient and effective.”

    Last year in March, Yashomati Hospitals was admitted under the Corporate Insolvency Resolution Process (CIRP) in a petition filed by Pegasus Assets Reconstruction. Initially, the company’s RP had received claims of over Rs 246.82 crore for the company. On May 30, 2022, the tribunal approved a resolution of Chennai Kauvery Medical Care for Rs 34.43 crore.





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