The National Company Law Tribunal (NCLT) on Wednesday sought reply from Moser Baer Solar (MBSL) on a petition filed by Central Bank of India seeking initiation of insolvency proceedings against the solar panel manufacturer. The principal bench, led by its chairman MM Kumar, has given the solar panel maker three weeks’ time to reply to the petition filed by the public sector lender under Section 7 of the Insolvency and Bankruptcy Code (IBC). The next hearing is scheduled on September 6. A subsidiary of Moser Baer India, MBSL’s gross debt stood at Rs 772 crore in FY13 (latest available) and reported a net loss of Rs 207 crore on revenues of R226 crore in the same period, Capitaline data showed.
NCLT would appoint an interim resolution professional, who will come up with a resolution plan along with a committee of creditors, once the petition is admitted. If the committee is unable to find a solution within 180 days ? this can be extended to 270 days ? the company will go into liquidation.
Operating under sub-optimal levels in the face of rising imports from China, MBSL has been in financial distress for several years now. The company had sought restructuring of `956 crore of debt in 2012-13 but failed in October last year. Some lenders have already issued loan recall and wilful default notices to MBSL.