ALSO READVA Tech Wabag moves appellate tribunal against NCLT insolvency order NCLT grants 90-day lifeline to Nagarjuna Oil Corp for insolvency resolution Lanco creditors to seek time extension to complete insolvency process Essar Steel insolvency case: IRP seeks suggestions on resolution plan Why banks will likely fail to recover Rs 3 trillion from loan defaulters
Hyderabad bench of National Company Law Tribunal(NCLT) has initiated the corporate insolvency resolution process(CIRP) for the debt-laden IVRCL. The bench has issued an 11-page order after examining the matter involving multiple hearings.
The bench has appointed Sutanu Sinha as the interim resolution professional(IRP) for conducting the resolution process while imposing moratorium on all the pending suits against the company besides barring the corporate debtor from entering into any fresh transactions involving the company assets.
In December 2017 State Bank of India(SBI) had moved the tribunal seeking the initiation of insolvency process against the company for defaulting on payment of loans extended by it.
SBI had sanctioned a total debt of Rs 11.45 billion under various facilities to the company. Out of this it had disbursed Rs 8.98 billion. As on October 22, 2017, an amount of Rs 6.04 billion was due and payable by the company even as the corporate creditor had held securities and pledges valued Rs 5.47 billion against these loan dues, as per the orders issued by the NCLT.
IVRCL and its subsidiaries owe as much as Rs 100 billion to various banks and financial institutions, including the SBI. The company was among the 28 large corporate defaulters identified by the Reserve Bank of India(RBI) for an early resolution. Consequent to the NCLT orders, the IRP will ask all the corporate creditors to submit the details of loans given to the company in the run up to the constitution of a committee of creditors (COC) to explore the options available under the IBC.