Insolvency proceedings kick off against Reid & Taylor India

Reid & Taylor India (RTIL) has been admitted for insolvency and bankruptcy proceedings at the National Company Law Tribunal (NCLT) bench here. The Corporate Insolvency Resolution Process has begun and the 180-day deadline for a resolution plan set in. 

Edelweiss Asset Reconstruction Company (ARC) and Finquest Financial Solutions had filed petitions in this regard. Reid and Taylor India has defaulted on loans worth over Rs 50 billion. 

The bench of Bhaskara Mohan and V Nallasenapathy had adjourned Edelweiss ARC’s case last week. A source said the latter’s petition had to be amended as the respondent's (Reid and Taylor India’s) name was wrong or had been changed. 

The company recently changed its name to RTIL. Business Standard could not verify when exactly this was done. 

RTIL's parent company, S Kumars Nationwide, has also been taken to the NCLT by IDBI Bank. 

The bench dismissed Finquest's application, as it was listed after Edelweiss ARC’s. If the latter's petition was admitted, the former's would become infructuous. 

An executive of EY India, as proposed by Finquest, has been appointed the Insolvency Resolution Professional (IRP) for the case. 

In the next 180 days, RTIL's operational creditors and financial creditors will have to send all their claims against the company, with documentary evidence, to the IRP, who will send these to the Committee of Creditors, once the lenders come together and draw up a resolution plan, within the stipulated time.