The company has been put under liquidation under Section 14 of the Insolvency and Bankruptcy Code (IBC).
Nicco was the first company to be referred to NCLT after the BIFR was scrapped. "It is the management which referred Nicco to NCLT, not the bankers", non-executive chairman of Nicco Rajive Kaul told PTI.
Kaul said "we are really surpised to see that the company is going for liquidation even though we tried our best to avert that. The workers will be in distress due to loss of jobs".
There were nearly 600 workers and employees, comprising blue and white collars, engaged at its two facilities in Shyamnagar (West Bengal) and Baripada (Odisha).
Resolution Professional (RP) for Nicco Corporation Kunal Banerjee said that liquidation could not be avoided as the stipulated 270 days time had passed and the lenders had rejected the revival package submitted by the company management.
The company had asked for some interest rate concessions on the loans taken from the banks and no discount on the principal amount.
Nicco borrowed around Rs 186 crore from several banks, the majority amount being from State Bank of India.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)