Rolta India joins the list of assets which have been referred for resolution under the IBC after the six-month period for resolving them by other means ended on August 27.
Union Bank of India has filed an insolvency petition against Rolta India in the Mumbai bench of the National Company Law Tribunal (NCLT), people aware of the development said. The company’s total debt stood at Rs 5,085 crore at the end of March.
Rolta India joins GMR Rajahmundry and GVK Power (Goindwal Sahib) in the list of assets which have been referred for resolution under the Insolvency and Bankruptcy Code (IBC) after the six-month period for resolving them by other means ended on August 27. As per the Reserve Bank of India’s (RBI) February 12 circular, non-performing assets (NPAs) worth over Rs 2,000 crore were to be either resolved within 180 days or referred to the insolvency courts.
Earlier this month, the Supreme Court asked RBI, banks and others to desist from invoking insolvency proceedings against corporate defaulters as per the banking regulator’s mandate till its orders, a move that came as a relief to stressed units in the power, textiles, sugar and shipping industries. The court will hear the matter next in mid-November.
Since Rolta does not belong to any of the four industries, bankers believe the order will not apply to proceedings against it. Rolta is a provider of information technology (IT) solutions for several verticals, including governments, utilities, process, power, financial services, manufacturing, retail and healthcare.
On September 14, India Ratings & Research affirmed a ‘D’ rating on `2,783 crore worth of Rolta’s borrowings, which include stand-by letters of credit, fund-based and non-fund-based working capital limits and external commercial borrowings. “The ratings reflect continued delays in debt servicing by Rolta India, due to deferred government receivables and the resultant stretch in the company’s net working capital cycle to 102 days in FY18 from 108 days in FY17,” the rating agency said in its rationale for the rating action.