NCLT Hyderabad orders liquidation of KSK Energy

The National Company Law Tribunal, Hyderabad Bench, has ordered liquidation of power generation company KSK Energy Ventures, as the insolvency resolution process could not find a valid expression of interest for its resolution.

The Bench of K Anantha Padmanabha Swamy, Member Judicial, and Veera Brahma Rao Arekapudi, Member Technical, in its order directed the liquidation of the company and ordered the liquidator to proceed with liquidation in the manner laid down in the Insolvency and Bankruptcy Code, 2016, and IBBI Regulation.

The BSE was intimated of the order as part of the company’s regulatory filing. Krishna Komaravolu has been appointed as the liquidator and has been directed to proceed with the liquidation. All powers of the board of directors, and the partners of the corporate debtor, will also cease to have effect.

No feasible resolution

Earlier, the NCLT had admitted the petition under the Insolvency & Bankruptcy Code against KSK Energy Ventures and Sai Ramesh Kanuparthi was appointed as the ‘interim resolution professional’.

After the due expression of interest process, the Committee of Creditors (CoC), at its meeting held on February 18, 2020, deliberated on the possibility of the revival of the corporate debtor. In the absence of any valid and feasible resolution plan, the CoC, with 78.67% voting, resolved to liquidate the company.

The resolution professional filed the decision of the CoC and asked he NCLT to take an appropriate decision, including liquidation. After taking on record the developments and inability find a suitor, the NCLT said since the liquidation order has been passed, no suit or other legal proceedings shall be instituted against the corporate debtor.

The liquidator has been ordered to submit a preliminary report about the developments and follow up on the liquidation within 75 days from the commencement of the process.