Shirdi Ind gets NCLT breather, can run biz without inviting takeover bids

Company says its case is different from other companies referred to NCLT as restructuring of loan was okayed by lenders before ordinance was passed for Insolvency and Bankruptcy Code

In the first verdict of its kind, the National Company Law Tribunal (NCLT) has granted permission to the management of Asis brand plywood and furniture maker Shirdi Industries to run its business without inviting bid for its takeover.

Normally, NCLT seeks bids for the insolvent company from potential acquirers under the Insolvency and Bankruptcy Code to recover the loan amount from the borrower. In the case of Shirdi Industries, however, NCLT has ordered the existing management of the company to run day-to-day business operations and has asked lenders to resolve the issue.

“We are the first company in which the existing management