Creditors of KSK Energy Ventures pass a resolution for its liquidation

The Committee of Creditors of independent power company KSK Energy Ventures Limited has recommended liquidation of the company after the failure to secure any resolution plan under the insolvency procedure.

During a recent meeting, the Committee of Creditors of the company passed a resolution through electronic voting to proceed with the liquidation of the company as it “has not received any expression of Interest (EoI) from any prospective resolution applicant till date even after seeking EoI twice.”

Ranjith Kumara Shetty, Company Secretary, in a statement to the BSE informed, “The Resolution Professional of the company is in the process of filing application for liquidation under Section 33 (1) (a) of Insolvency and Bankruptcy Code 2016 (IBC) with the National Company Law Tribunal (NCLT), Hyderabad.”

During November 2019, in the ongoing insolvency proceedings of KSK Energy Ventures Limited, the National Company Law Tribunal, invited EoI for resolution plan from prospective applicants.

IFCI, as a creditor of KSK Energy Ventures, had moved this insolvency petition in the NCLT for the default of loans. The NCLT in its order in September 2019 had ordered that the petition be admitted and appointed KS Ramesh as Interim Resolution Professional.

And as per the provisions, the petition was admitted under Section 7 of IBC, 2016 declaring moratorium with effect from the admission of the petition till the order of finding a Resolution Plan or an order of liquidation.

Judicial Member Ratakonda Murali and Technical Member Narender Kumar Bhola in their order rejected the contention that the creditor cannot maintain the present petition under the IBC on the ground that already financial creditor has initiated proceedings before the Debt Recovery Tribunal and that the matter was pending before the DRT.

It ruled that it is well settled that the pendency of DRT proceedings and initiation of action under SARFESI Act cannot be an impediment or bar to initiate the Corporate Insolvency Resolution Process under the Code and admitted the petition, which is now under consideration of the Tribunal for resolution.