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Liberty not losing hope for Adhunik Metaliks

Press Trust of India  |  Kolkata 

In spite of failing to pay up Rs 410 crore obligation within the deadline for the takeover of the debt-ridden Adhunik Metaliks, the Liberty House is hopeful of striking the deal, even as the issue will be heard in the Cuttak bench of the on April 30.

The has sought fresh extension of time, citing pending regulatory and statutory approvals but creditors apparently remained reluctant. The deadline for the payment was April 14.

"We are working on procuring statutory and regulatory approvals which are a vital part of the implementation plan," a Liberty House statement said.

Sources in committee of creditors (CoC) have indicated that they are not keen to extend the deadline any further and a fresh round of bidding could be a possibility, if things do not work out amicably in the the interim period.

The options before the CoC is to invite a fresh bid or allow time hoping to get funds.

The CoC may think for a fresh bidding if interest for the asset could improve compared to the Rs 410 crore offer where haircut had been 92 per cent against outstanding dues of Rs 5,370 crore in this round of resolution plan. But, this would be a time consuming affair.

However, it needs to be seen if NCLT entertains LHG plea to extend timeline for the payment or not.

The monitoring committee set up to oversee Adhunik's sale had on April 5 approved issuance of shares and debentures worth Rs 40 crore to the Liberty House in line with its resolution plan.

But, regulatory approvals had not arrived and LHG had pointed out that payment was not possible in absence of that.

In case of Adhunik, there were only two applicants - the UK-based Liberty House and the - for acquisition of the company under the Corporate Insolvency Resolution Process (CIRP).

Lenders to AML are SBI, National Bank, ICICI Bank, IFCI, & Sind Bank, UCO Bank, Allahabad Bank, Bank of Baroda, and SREI Infrastructure Finance, among others. The Kolkata bench of the National Company Law Tribunal (NCLT) had in July last year approved the resolution plan submitted by Liberty House.

According to reports, the LHG had earlier failed to meet the deadline for resolution payment within the stipulated time for Amtek Auto, prompting the NCLT to allow its creditors to go for a fresh round of bidding.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, April 16 2019. 21:15 IST