As per the Insolvency and Bankruptcy Code norms, an insolvent company is to be liquidated if during the moratorium of nine months no successful resolution plan is in place.
The Kolkata bench of the National Company Law Tribunal (NCLT) on Wednesday reserved its order over the issue of exclusion of requisite number of days from the mandated 270-day deadline under the insolvency resolution process for Adhunik Metaliks.
Resolution professional (RP) Sumit Binani urged the tribunal to exclude around 20 days from the stipulated 270-day deadline so that in this additional time the revised resolution plan of UK-based Liberty House could be considered. Earlier, the committee of creditors (CoC) had identified Liberty House as the highest bidder (H1).
Notably, for the debt-laden steelmaker, the stipulated deadline under the corporate insolvency resolution process (CIRP) expired on April 29, and during this period no resolution plan for the company was approved by its CoC. In his submission before a division bench of the tribunal, advocate Sidhartha Sharma, appearing on behalf of the RP on May 11, had said, “A lot of time has been lost while negotiating with Liberty House. The company has taken time to clarify its stand as an eligible resolution applicant under Section 29A of the IBC.” There are only two resolution applicants — Liberty House and Maharashtra Seamless of the DP Jindal Group. he former’s offer currently stands around Rs 600 crore, sources said.
As per the Insolvency and Bankruptcy Code norms, an insolvent company is to be liquidated if during the moratorium of nine months no successful resolution plan is in place. In his submission, workers’ union counsel Abhrajit Mitra had also appealed before the bench to provide additional time for the resolution process for approval of a successful resolution plan for Adhunik Metalik, the flagship of the Adhunik Group.