Creditors of KSK Energy Ventures pass a resolution for its liquidation

V Rishi Kumar Hyderabad | Updated on March 09, 2020 Published on March 09, 2020

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.

Published on March 09, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.