The National Company Law Tribunal’s latest order approving liquidation of ABG Shipyard marks a conclusion to insolvency proceedings of seven of a dozen stressed assets flagged by the Reserve Bank of India for initiation of proceedings under the Insolvency and Bankruptcy Code, 2016.
Last week, the NCLT Ahmedabad bench ordered that the company would go into liquidation under Section 33 (2)
of the code, and directed resolution professional Sundaresh Bhat to act as liquidator.
“…pursuant to the 21st meeting of the committee of creditors (CoC) of ABG Shipyard held on February 20, 2019, approval of the members of the CoC was accorded to liquidate the corporate debtor and the resolution professional i.e. Sundaresh Bhat was authorised to file an application before the Hon’ble National Company law Tribunal (Ahmedabad Bench) seeking liquidation of the corporate debtor,” the corporate debtor said in an exchange filing.
“The Hon’ble National Company law Tribunal (Ahmedabad Bench) vide its order dated April 25, 2019, copy uploaded on the NCLT website on April 29, 2019, ordered liquidation of the corporate debtor,” it said.
Lanco Infratech was ordered for liquidation in August 2018 while the NCLT allowed for start of the resolution process afresh in Amtek Auto after Liberty House failed to honour its payment commitments.
Electrosteel Steels that was successfully acquired by Vedanta. Bamnipal Steel, a step down subsidiary of Tata Steel, succefully bid for Bhushan Steel, which has since been renamed Tata Steel BSL.
Monnet Ispat & Energy was acquired by the JSW Steel-Aion Investments consortium while Alok Industries went to sole joint bidders JM Financial Asset Reconstruction and Reliance Industries. Jyoti Structures went to a group of
high net worth individuals led by Sharad Sanghi.
Essar Steel India, where the resolution process has crossed over 600 days has been succefully bid for by Arcelor Mittal India but pending closure owing to legal troubles over distribution of funds among stakeholders.
Era Infra Engineering, where Union Bank of India is the lead bank, was back in February seeking to bundle the parent company and the special purpose vehicles for the purpose of a holistic resolution.
Union Bank’s plan calls for mutual consent among members of the consortium to sell Era together with the SPVs and JVs and not as a standalone entity was meant to ensure a better value for all stakeholders. The plan entails appointing a common resolution professional (RP) and a single bidding process for the consolidated entity.
In case of Bhushan Power and Steel, lenders are awaiting the NCLT’s approval of JSW Steel’s proposed `19,700-crore resolution plan. Last week, principal bench of the NCLT on Tuesday had reserved its order on the matter.
Jaypee Infratech resolution also looks close with financial creditors and home-buyers currently voting on a bid by Suraksha Realty. The process will conclude on May 3.