Hyderabad bench of National Company Law Tribunal (NCLT) is likely to admit the insolvency resolution petition against Hyderabad-based infrastructure company IVRCL on January 8.
The State Bank of India (SBI), one of the corporate creditors of the debt-laden firm, had moved NCLT for initiation of insolvency resolution process against IVRCL to recover its loans under Section 7 of the Insolvency and Bankruptcy Code (IBC) on December 11, 2017.
The NCLT bench has posted the matter for January 8 while asking the petitioner to come back with the name of an interim resolution professional (IRP) for the initiation of resolution process that starts with the appointment of an IRP.
The bank had extended a total loan of Rs 8.99 billion to the company under various facilities, including working capital loan, out of which the corporate debtor defaulted on payment of Rs 6.04 billion to the lender, as per the claims made by SBI in its insolvency application.
The bench suggested that the bank should propose the name of a person who is currently not a resolution professional in any other IBC case for appointment as IRP so that he or she would be able to handle the resolution process expeditiously in this case, according to sources.
Once the IRP is appointed, all the creditors of the company, including SBI, will submit their claims to the resolution professional, who will in turn consolidate all the liabilities and assets of the corporate debtor before initiating other steps under the directions of NCLT.
IVRCL and its subsidiaries owe as much as Rs 100 billion to banks and financial institutions, according to the reports. It also has close to Rs 30 billion in accumulated losses.
The company figured in the list of 28 large corporate defaulters prepared by the Reserve Bank of India (RBI) for the purpose of a negotiated resolution between the promoters and the lenders before December 13, 2017 and under the IBC frame work after the deadline. In IVRCL case, lenders could not find a new investor as part of strategic debt restructuring (SDR) that was invoked in January 2016.
Source: Business-Standard