The National Company Law Tribunal (NCLT) Monday asked Singaporean investor Taguda to submit an fresh affidavit giving details of its resolution plan for steel trading firm Ushdev International that owes Rs 3,450 crore to lenders.
The petition was moved after the lenders, led by State Bank, had rejected Taguda’s resolution plan offering Rs 200 crore of upfront payment within 90 days, of which 75 percent would go to the lenders and the rest to operational creditors.
The State Bank of India council objected the petition of Taguda seeking the reasons for rejecting its offer, saying their decision was based on commercial wisdom and is not open for challenge.
“We think that we can recover Rs 900 crore and why should we accept a Rs 200-300 crore bid,” the counsel said, adding their optimism is based on the forensic audit which has not found any fund diversion by the promoters.
He said, 78 percent voted for liquidation, while 22 percent, including Lodha Financial Services (one of the financial creditors) voted against it.
Meanwhile, Lodha and the workers association of Ushdev have filed applications against the liquidation. A tribunal bench headed by MK Shrawat put the matter for detailed hearing on June 3.
Ushdev, founded by the late Vijay Gupta, who started operations as a commission agent and later diversified into power generation and steel trading.
The promoters held 54 percent stake in the company and the balance stake is held by the public.
