Monnet bankruptcy: NCLT names Sumit Binani as resolution professional

NCLT's order follows petition filed by bankers led by SBI against Monnet Ispat Bankruptcy Code, 2016

Allowing the plea of a consortium of lenders led by SBI, the National Company Law Tribunal (NCLT) on Tuesday appointed interim resolution professional (IRP) to initiate bankruptcy proceedings against Monnet Ispat & Energy Ltd.

The Mumbai bench of NCLT appointed Sumit Binani as IRP for carrying out the Corporate Insolvency Resolution Process (CIRP) of the company, Monnet Ispat said in a filing to the BSE.

"Sumit Binani, IRP supported by Grant Thornton Advisory Pvt Ltd, the financial adviser for managing the operations of the company has been appointed for carrying out the CIRP of the Company.

"Upon initiation of CIRP, the powers of the Board of Directors has been suspended & shall be exercised by the IRP," the filing said.

NCLT's order follows a petition filed by bankers led by State Bank of India against Monnet Ispat and Energy Limited under the Insolvency and Bankruptcy Code, 2016.

"We have to inform you that pursuant to an order dated 18 July, 2017 of the National Company Law Tribunal, Mumbai Bench, CIRP has been initiated for Monnet Ispat and Energy Limited as per the provisions of the Insolvency and Bankruptcy Code, 2016," it said.

The company said it has received a copy of the order yesterday.