Companies

NCLT initiates insolvency process against L&T Halol

Our Bureau Chennai | Updated on July 24, 2019 Published on July 24, 2019

Insolvency proceedings initiated against L&T Halol   -  istock.com

The National Company Law Tribunal (NCLT), Chennai Bench, has initiated insolvency process against L&T Halol - Shamlaji Tollway Ltd (L&T Halol) on a petition filed by Oriental Bank of Commerce. The bank alleged that the company had defaulted in repayment of ₹76.68 crore as on December 2018.

L&T Halol, a special purpose vehicle (SPV) of L&T Infrastructure Development Projects Ltd, however, denied the allegation. Even if there was a default, the bank on its own cannot initiate proceedings against the company, said information in the order by BSV Prakash Kumar, member (Judicial), NCLT Chemnai Bench.

The bank had disbursed a loan of around ₹155 crore in 2009. However, the company failed to make it standard account, following which the bank and other lenders entered into Master Restructuring Agreement in February 2017 to convert the debt of ₹405.82 crore into equity, out of total debt of ₹1,000 crore payable to the consortium of banks.

NCLT, Chennai Bench, in the order said the bank has proved the existence of debt and default. The Bench admitted the application for insolvency process, and also appointed Anil Kumar Birla as Interim Resolution Professional, the order said.

Published on July 24, 2019
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