A Division Bench of the National Company Law Tribunal (NCLT), Chennai, has ordered starting of Corporate Insolvency Resolution Process against liquor manufacturing company Empee Distilleries.
The Bench has also appointed V Venkata Siva Kumar as the Interim Resolution Professional to take charge of the company’s affairs immediately.
The Bench passed the order based on a petition filed by Union Bank of India (UBI), according to a communication issued by Empee Distelleries to the Bombay Stock Exchange.
UBI claimed a default of ₹10 crore from the company as on December 31, 2015. The financing was done through a multi-banking arrangement with 60 per cent from Andhra Bank and the rest by UBI. The financing was mainly for the company’s alcohol plant and import and exports.
The company did not file any counter, documents or objections for the petition after attempts to settle the matter has failed, the company said.