Ready to pay for Adhunik Metaliks bid, Liberty House tells NCLT

Liberty House counsel on Thursday made representations before the Kolkata Bench of the National Company Law Tribunal (NCLT) that it was ready with funds to close the transaction with creditors of Adhunik Metaliks.

The counsel, however, did not mention the amount. Earlier, Liberty House had offered to pay in tranches, Rs 100 crore within 14 days from December 12, and the balance Rs 310 crore by January 15, which is the longstop date, as defined in the resolution plan. 

However, the committee of creditors (CoC) had rejected the payment in instalments verbally at the tribunal. The CoC has already filed an application for liquidation but the counsel representing the committee on Thursday said it had not pressed for it as it did not want to litigate in perpetuity. 

According to RFRP (request for resolution proposal) document, lenders could also invoke the default clause if they so wanted, which would allow it to invite fresh bids.

However, Liberty House Group said, “The Liberty-Adhunik Metaliks matter is protected and secured since the matter is sub judice and is being considered by the NCLT. Liberty House Group is confident that the National Company Law Appellate Tribunal (NCLAT) will resolve the Adhunik Metaliks MSTC matter and is committed and on track to implement its resolution plan to ensure the revival of Adhunik Metaliks’ business.” 

The Liberty House counsel brought to the attention of the NCLT that the MSTC issues were pending, which would have a material bearing on the present matter. 

MSTC has filed for claims of Rs 100 crore to be included as part of the CIRP (corporate insolvency resolution process) cost. The MSTC matter is slated for hearing in the NCLAT on January 21 while the matter before the Kolkata bench would come up for hearing on January 24. 

At the Kolkata’s NCLT bench, a counsel representing Adhunik workers, informed the bench on Thursday that it had filed an application in support of Liberty House. “We have paid an amount of money and want to avoid liquidation,” the counsel said.

Sources said Sanjeev Gupta of Liberty House had made a personal expense Rs 96 lakh, 15 days’ salary to around 1,100 employees of Adhunik Metaliks.