The resolution professional of the debt-laden IVRCL has invited expressions of interest for a resolution plan for the company. The Hyderabad-based infrastructure company is now a matter of adjudication in the National Company Law Tribunal, facing recovery/ insolvency proceedings after it was taken up for a Corporate Insolvency Resolution Process under the provisions of the Insolvency and Bankruptcy Code, 2016.
The NCLT in its order dated February 23, 2018 had taken up the matter. Sutanu Sinha, Resolution Professional for IVRCL, has invited expressions of interest from potential resolution applicants for submission of a resolution plan under the provisions of the Insolvency and Banking Code, giving them time till May 24 to submit their plans.
However, he makes it clear that the terms and conditions for inviting a resolution plan will be determined with the approval of the Committee of Creditors of IVRCL and may be changed at any stage. The Committee or Resolution Professional reserves the right to cancel or extend the process or even disqualify any resolution applicant.
In some ongoing cases of a similar nature, there have been instances of the Committee of Creditors rejecting plans and seeking new applicants. The move to invite expressions of interest for the resolution plan comes in the backdrop of the company being taken to the NCLT by its bankers, after it failed to pay up its dues and the business and the company performance was adversely impacted due to lack of working capital.
In the past, efforts to resolve company debt through a Corporate Debt Restructure process and Strategic Debt Restructure process have failed to achieve the desired results. The company, once known to be amongst the major infrastructure players in the country, both under BOT projects and EPC, has been finding the going tough over the past five-six years, and has landed up in the NCLT, Hyderabad.