Insolvency process: Adhunik Metaliks RP likely to seek more time

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Kolkata | Published: April 30, 2018 4:36:42 AM

What is of grave concern for the bankrupt company is the fact that the mandated 270-day deadline under the CIRP expired on Sunday, and during this period no resolution plan for the insolvent company was approved by its lenders.

For Adhunik Metaliks, there are only two resolution applicants — UK-based Liberty House and Maharashtra Seamless of the DP Jindal Group.For Adhunik Metaliks, there are only two resolution applicants — UK-based Liberty House and Maharashtra Seamless of the DP Jindal Group.

In an attempt to get some additional time to arrive at a successful resolution plan in order to save Adhunik Metaliks from going into liquidation, its resolution professional is likely to move the NCLT on Tuesday to exclude the “unnecessary” days lost from the stipulated period under the insolvency resolution process.

The RP for the insolvent steel maker, Sumit Binani, is likely to seek exclusion of as many as 25 days from the mandated 270-day deadline under the corporate insolvency resolution process (CIRP), a source told FE.

The Kolkata bench of the NCLT is scheduled to hear the matter on May 1, when the fate of the Adhunik Group flagship will be decided.
What is of grave concern for the bankrupt company is the fact that the mandated 270-day deadline under the CIRP expired on Sunday, and during this period no resolution plan for the insolvent company was approved by its lenders. According to the Insolvency and Bankruptcy Code (IBC) norms, an insolvent company is to be liquidated if during the moratorium of nine months no successful resolution plan is in place.

For Adhunik Metaliks, there are only two resolution applicants — UK-based Liberty House and Maharashtra Seamless of the DP Jindal Group.

“As the stipulated period expired on April 29, the RP is going to approach the NCLT on May 1 for some additional time for making an attempt to arrive at a successful resolution plan,” said the source.

“If the NCLT allows additional time, it would help the commitee of creditors consider the resolution plans,” the source said, requesting anonymity.

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