Comments
The Resolution Professional (RP) for Adhunik Metaliks Ltd will present a detailed report before the Kolkata bench of the National Company Law Tribunal (NCLT) on Tuesday seeking ‘suitable directions’ with regards to the insolvency proceedings of the company.
The 270-day deadline granted to the bankrupt company under the corporate insolvency resolution process (CIRP) expired on April 29. However, no resolution plan was approved by the Committee of Creditors (CoC) during this period. According to the Insolvency and Bankruptcy Code (IBC) norms, a stressed entity undergoing CIRP goes into liquidation if no successful resolution plan is put in place within the stipulated 270-day period.
In case of Adhunik, there were only two resolution applicants, including the UK-based Liberty House and the DP Jindal Group company, Maharashtra Seamless. However, there were issues regarding the eligibility of Liberty House’s bid, which was selected as the highest bidder (H1), under Section 29A of IBC. Under the said section, a bidder can be disqualified for several reasons, including a loan default in any of the company’s subsidiaries.
“The RP may seek suitable direction from the NCLT, including the exclusion of nearly 25 days from the 270-days period, since it got wasted on account of ascertaining the eligibility criteria of the H1 bidder,” a source directly involved in the CIRP process told BusinessLine .
It is to be noted that the Hyderabad bench of NCLT had granted an additional 87 days (beyond the 270-days) to Deccan Chronicle Holdings to wrap up its insolvency resolution process. The NCLT had ordered the exclusion of 87 days from 270 days on account of the time consumed by litigation.
The Kolkata bench of NCLT had admitted the insolvency petition filed by State Bank of India against Adhunik Metaliks and other group companies and subsidiaries, including Zion Steel and Orissa Manganese & Minerals, in August 2017.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.