As many as eight entities, including Edelweiss Asset Reconstruction Company and SREI Infrastructure Finance, have submitted their proposed resolution plans for four bankrupt Adhunik Group companies, which are under the corporate insolvency resolution process.
As many as eight entities, including Edelweiss Asset Reconstruction Company and SREI Infrastructure Finance, have submitted their proposed resolution plans for four bankrupt Adhunik Group companies, which are under the corporate insolvency resolution process. Twenty-four firms had expressed interest in submitting resolution plans for the four companies—Adhunik Metaliks, Orissa Manganese & Minerals, Zion Steel and Adhunik Alloys & Power. “Finally, seven-to-eight entities, including Edelweiss ARC, Srei and Rashmi Group, have submitted their proposed plans to the resolution professional,” a source close to the development told FE. The deadline for submitting proposed resolution plans by the potential investors for the four insolvent firms is over, the source added. The resolution professional of the firms, Sumit Binani, was unavailable to make a comment on the submitted resolution plans. When contacted, Hemant Kanoria, CMD of Srei Infrastructure Finance, said he was not aware of the matter, while a spokesperson for Edelweiss ARC declined to comment. Bankruptcy proceedings against Adhunik Metaliks, the flagship of the Adhunik Group, its subsidiary Orissa Manganese & Minerals and group companies Zion Steel and Adhunik Alloys & Power, were approved by the Kolkata bench of the National Company Law Tribunal (NCLT) in August last year. The insolvency petitions had been filed by 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. Adhunik Alloys & Power has defaulted on financing of `329.93 crore from SBI.