The resolution professional for the bankrupt Era Infra Engineering will invite expressions of interests (EoI) from potential bidders next week.
The resolution professional for the bankrupt Era Infra Engineering will invite expressions of interests (EoI) from potential bidders next week. The lenders of the company at their last meeting, held earlier in the week, firmed up the evaluation matrix based on which the bids will be evaluated, sources said. The National Company Law Tribunal (NCLT) had on May 8 ordered the initiation of the corporate insolvency resolution process against Era Infra Engineering under Section 7 of the Insolvency and Bankruptcy Code (IBC). The firm, which owes lenders a little over Rs 10,000 crore, was referred to the NCLT by Union Bank of India.
“At our third meeting, held last week, we have firmed up the evaluation matrix. Now, the EoI will be issued, most likely next week,” the source said. A resolution professional needs to come up with a corporate insolvency resolution plan (CIRP) in consultation with the committee of creditors (CoC) within 180 days of the admission; this can extended to 270 days. Era Infra’s total debt at the end of March, 2016 stood at Rs 10,065 crore. In 2016-17, the company reported a net loss of Rs 1,295 crore on the back of Rs 1,211 crore in revenues.