The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition against Abhijeet MADC Nagpur Energy (AMNEPL).
The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted an insolvency petition against Abhijeet MADC Nagpur Energy (AMNEPL). The petition was filed by Alchemist Asset Reconstruction Company (ARC) under the Insolvency and Bankruptcy Code (IBC). The tribunal has appointed Vinod Kumar Kothari as the interim resolution professional (IRP) in the company which owes the ARC Rs 959 crore. According to the final order of the tribunal, Rs 728 crore was disbursed by Axis Bank, State Bank of Hyderabad, Bank of Maharashtra and UCO Bank from July 2, 2009 to April 30, 2013. Meanwhile, the Maharashtra Airport Development Company owns 26% of the company. “The operations of the corporate debtor (Abhijeet MADC) have become like open and shut, commenced on August 1, 2011 and suspended in January 2014,” the order said.
Lenders had referred the company to the corporate debt restructuring (CDR) cell and the proposal was approved on March 28, 2013. However, Abhijeet MADC failed to repay the loan even after the debt was restructured and was subsequently classified a non-performing asset (NPA) by UCO Bank, State Bank of Hyderabad, Axis Bank and Bank of Maharashtra. AMNEPL is a special purpose vehicle promoted by Abhijeet Power, Abhijeet Infrastructure and Maharashtra Airport Development Company. The company had developed a 271 MW power plant in Nagpur.The Manoj Jayaswal-led Abhijeet Group is allegedly among the biggest beneficiaries of the controversial coal block allotments, as part of which the firm got blocks in Jharkhand and Chhattisgarh. The Nagpur-based group has presence in power, roads, mining, EPC, ferroalloys, steel and cement.