The 270-day deadline under the corporate insolvency resolution process for the debt-laden steel maker expired on Sunday, and during this period, no resolution plan for the company was approved by its Committee of Creditors.
The resolution professional (RP) of Adhunik Metaliks on Tuesday urged the Kolkata bench of the National Company Law Tribunal (NCLT) to exclude 20 days from the mandated 270-day deadline under the insolvency resolution process for the insolvent company so that in this additional time the revised resolution plan of UK-based Liberty House could be considered.
The stipulated 270-day deadline under the corporate insolvency resolution process (CIRP), for the debt-laden steel maker, expired on Sunday, and during this period, no resolution plan for the company was approved by its Committee of Creditors (CoC). There are only two resolution applicants —Liberty House, the highest bidder (H1) for the bankrupt firm, and Maharashtra Seamless of the DP Jindal Group — for the company.
In his submission before the division bench of the tribunal, comprising justices Jinan KR and Madan Balachandra Gosavi, Sumit Binani, the RP, said, “If 20 days, which we have lost due to unwanted situation, is excluded from the purview of the 270-day, we may save the company from going into liquidation.”
As per the Insolvency and Bankruptcy Code (IBC) norms, an insolvent company is to be liquidated if during the moratorium of nine months no successful resolution plan is in place. Bankruptcy proceedings against Adhunik Metaliks, its subsidiary Orissa Manganese & Minerals and Adhunik Group companies Zion Steel and Adhunik Alloys & Power, were admitted by the Kolkata bench of NCLT in August last year. The insolvency petitions had been filed by the State Bank of India (SBI).
SBI, which leads the consortium of lenders to the companies, had in July last year filed insolvency petitions over non-payment of loans worth about Rs 940 crore by Orissa Manganese & Minerals (OMML) and Rs 812 crore by Adhunik Metaliks (AML). The bank had also claimed dues from Zion Steel, as it was a co-obligator to the loans disbursed to OMML and AML under the provisions of the master restructuring agreement and the common loan agreement signed in March 2014.