Liquidator invites EoI for sale of IVRCL as a ‘going concern’

V Rishi Kumar Hyderabad | Updated on September 06, 2019

Liquidator of IVRCL Ltd has invited expressions of interest for sale of the construction company as a ‘going concern.’

Sutanu Sinha, the official liquidator appointed by the National Company Law Tribunal, Hyderabad, has announced the move to invite EoI for the Hyderabad-based construction company.

IVRCL, which had faced number of petitions for recovery, had to undergo the process of insolvency under the IBC, 2016, wherein it was ordered to be liquidated as a ‘going concern.’ Following the failure to find a suitor, the NCLT ordered its liquidation as a going concern. Sutanu Sinha, who served as the Resolution Professional and steered the insolvency process at the NCLT, was later appointed as the official liquidator.

The liquidator informed that the e-auction shall be scheduled on October 4 with a reserve price of ₹1,654.47 crore subject to various terms.

The company had closed last financial year with revenues of ₹752.30 crore and a loss of ₹1,545.20 crore. During the June quarter, IVRCL incurred a loss of ₹378 crore resulting in accumulated losses of ₹6,101 crore and erosion of its net worth as on June 30, 2019.

The company has obligations towards fund based borrowings, including interest aggregating to ₹9,593.48 crore as per books of accounts and non-fund based exposure aggregating to ₹857 crore.

Published on September 06, 2019

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