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Following default of loans to lenders, insolvency proceedings have been initiated against Hindustan Dorr Oliver Ltd, a company engaged in EPC contracts and turnkey solutions. The Hyderabad-based infrastructure and construction company IVRCL Ltd, which itself faces mounting losses, owns Hindustan Dorr Oliver Ltd, whose net worth has been eroded.
Following an order passed by the National Company Law Tribunal late last month, chartered accountant Amit Gupta has been appointed as interim resolution professional to carry out the functions under the Insolvency and Bankruptcy Code.
On the lender’s plea, the management control will now vest with the specially appointed professional and the powers of the Board of Directors of the company shall stand suspended.
The suit was initiated by Bank of India, wherein it had petitioned that the company had defaulted in making payment of ₹856.56 crore as on March 31, 2016 availing various credit facilities, which includes sanctioned amount of ₹660.55 crore. This includes capital term loan of ₹153 crore, Funded Term Interest Loan, bill and invoice discounting etc.
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