The company, which had debt levels of over Rs 10,000 crore to financial and other creditors, was under liquidation as a going concern following an order by the National Company Law Tribunal (NCLT), Hyderabad bench.
Hyderabad-based debt-laden infrastructure firm IVRCL has received a bid under the e-auction process from Gabs Megacorp for Rs 1,654.77 crore under the Insolvency and Bankruptcy Code (IBC). The company, which had debt levels of over Rs 10,000 crore to financial and other creditors, was under liquidation as a going concern following an order by the National Company Law Tribunal (NCLT), Hyderabad bench. The NCLT had, on July 29, 2019, ordered the liquidation of the company as there was no suitor for a resolution of the firm.
“As part of the liquidation process under the provisions of the Insolvency and Bankruptcy Code, 2016, (IBC) and Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016, the company on February 27, 2020, has received a bid under e-auction process for sale of the company as going concern from Gabs Megacorp at a price of Rs 1,654.77 crore,” the company said in a filing to BSE.
“The sale would be, however, subject to the decision of the National Company Law Appellate Tribunal, Delhi in the matter of Company Appeal (AT) (Insolvency) on the pending appeal against the NCLT order dated July 26, 2019, read with corrigendum order dated July 31, 2019, ordering liquidation of the company as a going concern and subject to the provisions of IBC 2016 and liquidation regulation,” the company said.
Sutanu Sinha, the official liquidator appointed by the NCLT, Hyderabad, had announced the move to invite EoI for IVRCL. It faced a number of petitions for recovery and had to undergo the process of insolvency under the IBC, wherein it was ordered to be liquidated as a ‘going concern.’ An application made by lender SBI, judicial member K Anantha Padmanabha Swamy, in his order, directed the liquidation of the debt-laden company.
With aggregate claims against IVRCL touching Rs 13,406 crore, the company’s debt is part of the large NPA accounts identified by the Reserve Bank of India (RBI) for immediate resolution. “After accounting for the claims from about 38 financial institutions, over 2,815 operational creditors and 3,368 unpaid workers as per the data compiled by RP, the total claim is about Rs 13,405.92 crore,” an analyst said.