 "Illustration by Binay Sinha")
Financially stressed McNally Bharat Engineering, a B M Khaitan Group company, has proposed a resolution plan to its lenders outside the purview of the National Company Law Tribunal (NCLT).
According to the plan, McNally would rope in a consortium of investors for capital infusion into the debt-laden company.
Ailing for over several quarters, McNally argued that its performance was affected by the downturn in the infrastructure sector, working capital constraints and other external factors. And because of these issues, it — along with one of its subsidiary companies — failed to meet its financial commitments to the lenders.
The resolution plan was based
