Bankruptcy proceedings against Adhunik Metaliks, the flagship firm of the Adhunik Group, subsidiary Orissa Manganese & Minerals, and Zion Steel, a promoter group company, were approved the Kolkata bench of the National Company Law Tribunal on Thursday. The insolvency petition had been filed by State Bank of India (SBI). The single-judge bench of justice Vijai Pratap Singh appointed Sumit Binani the insolvency resolution professional for all three companies. SBI, which leads the consortium of lenders to the companies, had in July filed insolvency petitions over non-payment of loans worth around Rs 940 crore by Orissa Manganese and Rs 812 crore by Adhunik Metaliks. The bank is understood to have claimed dues from Zion Steel because it is a co-obligator. In other words, if a company fails to repay the loans, it is the obligation of the other companies party to the loan agreement to use their cash flows to repay the loans. FE had earlier learnt from bankers that the insolvency petition against Adhunik Metaliks followed a failed attempt by them to convert a part of the company\u2019s debt into equity through strategic debt restructuring. The conversion could not be completed within the deadline since lenders failed to find an investor. Earlier, the company\u2019s loans were restructured by the corporate debt restructuring cell in March 2015. Adhunik Metaliks reported a net loss of Rs 1,480 crore in 2016-17 on Rs 1,221 crore in revenues. The firm\u2019s consolidated gross debt stood at Rs 4,682 crore. Bankers to the company include Allahabad Bank, Bank of Baroda, Bank of Maharashtra, Corporation Bank, HDFC Bank, ICICI Bank, Indian Overseas Bank, Punjab National Bank, and SBI and its subsidiaries, among others. The company makes alloy and carbon steel products for the auto, power and engineering sectors. In 2013, the board of Adhunik Metaliks had approved a new corporate structure for the company, wherein Zion Steel would first be merged with Adhunik Metaliks and subsequently Adhunik Metaliks, a listed entity, would be reverse merged with its wholly owned subsidiary Orissa Manganese & Minerals.