The Committee of Creditors (CoC) of BS Ltd has requested resolution plan applicant United Trade Co to improve its offer and modify its terms.
Formerly known as BS TransComm Ltd, BS is an infrastructure and engineering, procurement and construction (EPC) firm operating in the segments of power transmission & distribution and telecom.
In its ninth meeting, the CoC reviewed United Trade’s proposal and asked it to enhance the resolution amount and modify the other terms of the resolution plan.
Following an order of the National Company Law Tribunal (NCLT) in November 2018, BS has been undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC), 2016.
In its petition, the SBI-led lenders had said BS was granted a loan of ₹993.94 crore and, in addition, working capital arrangements were provided.
However, since the debtor failed to honour its financial commitment, the NCLT was moved. The tribunal admitted the case and appointed KV Srinivas as the resolution professional.
Deadline extension
Srinivas had subsequently moved a petition to extend the deadline for resolution by 90 days beyond the 180 days allowed for the process. The NCLT granted the extension.