The Kolkata bench of the National Company Law Tribunal (NCLT) on Thursday ordered liquidation proceedings against Gujarat NRE Coke on a 'going concern' basis and stipulated some conditions for the proceedings.
The pronouncement was expected as no resolution plan was approved by the creditors of the insolvent company during the specified time period as per the Insolvency and Bankruptcy Code (IBC).
"The liquidator shall try to dispose off the corporate debtor company as a going concern after publication of notice in newspaper with the reserve price which shall be equal to the total debt amount including interest and maximum period applicable for trying the sale of the corporate debtor as a going concern will be three months from the date of the order," the order said.
According to the order, if the "process of sale as a going concern is failed" during the three-month period, then the "process of sale of assets of the company will be according to the provisions of sale of assets of the company under Section 33, Chapter VI of the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016".
In April last year, the tribunal had admitted an application by the metallurgical coke producer, the flagship company of Gujarat NRE group, under the IBC for initiating the insolvency resolution process.
Gujarat NRE owes lenders around Rs 4,600 crore and it had reported a net loss of Rs 676 crore on the back of Rs 541 crore in revenues in 2016-17.
Currently, the company has 1,178 employees and workers.
According to the order, Sumit Binani, the resolution professional (RP) of the company, is appointed as the liquidator.
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