The bankruptcy court has directed the chief executive of listed infrastructure company Sadbhav Engineering to resolve the issue of payment to its creditors in consultation with its board.
The Ahmedabad bench of the National Company Law Tribunal also directed IDBI Bank to convene a meeting of all the consortium lenders to resolve the debt restructuring issue of the company.
The development is expected to set a precedent regarding the tribunal’s power to direct the consortium lenders to convene a meeting to see if the issue can be resolved.
The direction came after the company’s chief executive officer appeared before the tribunal and said the company had proposed a restructuring package to all the financial creditors, and was looking to resolve the issue.
“He (CEO) is directed to resolve the issues of payment in consultation with its board… as there are multiple applications by many operational creditors before this tribunal,” the bench said in its order of June 19.
Source: Economic Times