The National Company Law Tribunal (NCLT) today extended the insolvency resolution period of the debt ridden firm Bhushan Energy Ltd by another 90 days.
The initial period of 180 days for the corporate insolvency resolution process of Bhushan Energy will end in the first week of July, and it had approached NCLT seeking extension.
The principal bench of NCLT headed by President M M Kumar allowed the extension of insolvency resolution period for Bhushan Energy Ltd beyond 180 days.
Under the Insolvency and Bankruptcy Code (IBC), NCLT has powers to extend the insolvency resolution period if the Committee of Creditors (CoC) and Resolution Professional (RP) of the debt ridden firm are unable to find a suitable buyer under 180 days.
NCLT can grant another 90 days for the submission of the resolution plan, failing to which the debt ridden firm goes for liquidation.
Extension of time was necessitated as the company was yet to peruse the expressions of interest received from some companies, counsel appearing for Bhushan Energy informed the tribunal.
NCLT had admitted insolvency proceedings against Bhushan Energy in January after the State Bank of India moved an appeal against the company for failing to pay dues worth nearly Rs 5oo crore as on October 31, 2017.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)