NCLT approves Burn Standard resolution plan; ex-officers to appeal to NCLAT

Plan has been accepted by current employees who fear the company may be closed down by the railway ministry

The National Company Law Tribunal (NCLT) on Tuesday approved the resolution plan on Tuesday for Burn Standard Company, which comprises a Rs 4.17 billion package. However, around 160 former officers of the state-owned wagon maker have decided to move the National Company Law Appellate Tribunal (NCLAT) contesting the decision.

Sources said the resolution plan includes clearing off the dues of the financial and operational creditors as well as offer voluntary retirement scheme to around 500 employees. United Bank of India is the sole financial lender to Burn Standard Company besides 196 other operational creditors whose consolidated exposure to Martin Burn Company is