ICICI Bank has dragged infrastructure major company Punj Lloyd to National Company Law Tribunal (NCLT) for insolvency under the Insolvency and Bankruptcy Code (IBC), which the company said, other lenders under the leadership of State Bank of India (SBI) will oppose. When asked for clarification by the Bombay Stock Exchange (BSE), Punj Lloyd informed the stock exchange about the development.
“We would like to inform you that ICICI has filed an application before the NCLT under Sec 7 of the IBC,” the company said. It added that more than 90% of its lenders, however, have agreed to support the resolution plan and “shall oppose ICICI application at NCLT”. The matter is listed for hearing at NCLT on Thursday. Media reports said that Punj Lloyd has an outstanding debt of Rs 852 crore.
Punj Lloyd reported a standalone profit of Rs 944 crore for the quarter ended March 2018. The company had said in its Q4 earnings report that a part of its financial restructuring will be towards paring debt and strengthening the balance sheet and has submitted a proposal to its lenders for the restructuring of its debt. The restructuring proposal was being reviewed by the lenders as per the latest RBI guidelines.
Punj Lloyd Group is a diversified international conglomerate offering EPC services in energy and infrastructure along with engineering and manufacturing capabilities in the defence sector.