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The Hyderabad Bench of the National Company Law Tribunal (NCLT) has ordered the liquidation of Hyderabad-based construction and infrastructure company IVRCL Ltd.
Based on an application made by lender SBI, Judicial Member K Anantha Padmanabha Swamy, in his order, directed the liquidation of the debt-laden company.
Various efforts made during the Insolvency Resolution Process to find a suitor for the firm had not materialised, leading to the petition for liquidation.
In a regulatory alert to the BSE and NSE, the Resolution Professional (RP) said the NCLT has ordered IVRCL’s liquidation as a going concern.
Resolution plan
First Global Finance had submitted a resolution plan for IVRCL. It was later asked to improve its offer. However, the bankers did not find the resubmitted plan adequate either.
This meant that the RP had to move a petition for liquidation, which was allowed by the NCLT.
Advocate G Kalyan Chakravarthy, who represents one of the bidders, said: “We are yet to receive the final NCLT order. We will go through the order and possibly take up the matter with the National Company Law Appellate Tribunal seeking to revive the company, opposing the liquidation process.”
IVRCL’s troubles started around 2009-10, when interest rates ruled high, its debt began to swell and some of its projects under execution were bogged down by delays.
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