After it heard the State Bank of India (SBI) versus Electrosteel Steels insolvency petition on Tuesday, the Kolkata bench of the National Company Law Tribunal (NCLT) is likely to pronounce the final order on Wednesday. In an earlier hearing on July 10, the bench had reserved its order.
The counsel for Electrosteel Steels argued the case on Tuesday and also filed a written submission in the court of Justice Vijai Pratap Singh. According to the SBI counsel, the lender wanted PWC to be appointed as an interim resolution professional (IRP). Under the Insolvency and Bankruptcy Code , IRP would take control of a borrower’s assets and manage its operations, while constituting a committee of creditors to take stock of all claims.
Lenders had initiated a strategic debt restructuring on June 8, 2015 and on January 7, 2016 the shareholders in an extraordinary general meeting approved the joint lenders forum’s decision to convert a part of the principle restructured debt to equity.