BTL EPC, the engineering division of Kolkata-based Shrachi Group, has emerged as the highest bidder for insolvent McNally Bharat Engineering, according to sources close to the development. “The CoC adopted a Swiss challenge auction to identify the highest bidder from the four resolution applicants. After the final round, BTL-EPC has emerged as the highest bidder,” the sources said.
Also Read: Panel suggests limiting group insolvency to bankrupt entities
The other three resolution applicants are Naveen Jindal-led Nalwa Steel And Power, Amit Metaliks of Amit Alliance and Rashmi Metaliks of Rashmi Group. Rashmi Metaliks, a late entrant, submitted its resolution plan early this month under the corporate insolvency resolution process (CIRP) pursuant to a National Company Law Tribunal (NCLT) order dated January 6.
Ravi Sethia, the resolution professional for McNally Bharat, declined to comment on the ongoing CIRP.
McNally Bharat is an engineering firm of the Khaitan family-led Williamson Magor group. It is engaged in providing turnkey solutions in the areas of power, steel, coal & mining, ports, aluminium, material handling, mineral processing and cement, among others.
The company was admitted in the CIRP as per an order pronounced by the Kolkata bench of the NCLT on April 29, 2022. The insolvency petition against it was filed by Bank of India, one of its financial creditors, under Section 7 of the Insolvency and Bankruptcy Code.
Also Read: Budget session to bring major overhaul in insolvency law
The total provisionally admitted claims of financial creditors of the company stood at over `3706 crore. Bank Of India, Axis Bank, State Bank Of India, IDBI Bank, Punjab National Bank, ICICI Bank, Union Bank and Indian Bank, among others, are the financial creditors.