In another blow to infrastructure major Punj Lloyd, now International Finance Corporation (IFC) has moved National Company Law Tribunal (NCLT), seeking initiation of insolvency proceeding under the Insolvency and Bankruptcy Code (IBC) to recover dues worth about $30 million from the company. Headed by President Justice MM Kumar, a two-member principal panel has issued notices to Punj Lloyd and Punj Lloyd Upstream Ltd, the PTI reported.
It may be noted that earlier in June this year, private sector lender ICICI Bank had also moved NCLT to recover worth Rs 852 crore of dues. However, the insolvency plea by ICICI Bank was opposed by a consortium of lenders led by the State Bank of India (SBI), which said that the company’s asset base covers only 5% and full recovery of the outstanding dues is only possible if the infrastructure firm is allowed to complete its ongoing 28 projects.
Punj Lloyd is said to have a debt of approximately Rs 6,000 crore and over 90% of the lenders, during a meeting of lenders held in June this year, agreed to restructure the outstanding debt of the company.
Now, NCLT has directed to list the two petitions for October 9 hearing when it will be hearing the plea moved earlier by ICICI Bank.
Punj Lloyd Group is a diversified international conglomerate and offers EPC services in energy and infrastructure, along with engineering and manufacturing capabilities in the defence sector.
For the quarter ended on March 2018, the company clocked a standalone profit of Rs 944 crore. In its quarter four earnings report, Punj Lloyd said that the restructuring proposal of the company was being reviewed by the lenders, as per the latest guidelines by the Reserve Bank of India (RBI).
Shares of Punj Lloyd were trading at Rs 9.45, down 0.53% at 12:50 PM on Thursday on BSE, while the exchange’s benchmark Sensex was down 699.53 points or 1.94% from the previous close.