The principal bench of the National Company Law Tribunal (NCLT) on Monday admitted an insolvency petition against Amrapali Infrastructure, filed by Bank of BarodaBSE -0.11 %.
The lender approached the tribunal after the Amrapali group company defaulted on a loan of Rs 97.30 crore. NCLT will now appoint an insolvency resolution professional (IRP) to manage the company. The IRP gets 270 days to turn around the company, failing which its assets will be liquidated and the proceeds will go towards repaying the loan.
Bank of Baroda had on August 10 moved NCLT to start an insolvency proceedings against Amrapali Infrastructure under the Insolvency and Bankruptcy Code. The case was heard on the same day, but the court reserved its order and pronounced it on Monday.
Amrapali Infrastructure is into leasing of construction equipment and has a factory in Greater Noida that makes hollow core slabs and column beams for affordable housing projects.
“We will find a resolution in this matter within 3-5 months after appointment of IRP. There are many companies interested in taking up a stake in Amrapali Infrastructure,” said Shiv Priya, a director of Amrapali group.
Priya said the company had invested around Rs 500 crore in the factory. “We had applied for restructuring of the company’s loans with the bank and asked for more time for payment of dues. However, it denied our request and moved the NCLT,” he said.
