The Hyderabad-based construction company IVRCL Ltd is now headed for liquidation, after a resolution plan failed.
The Resolution Process, which was moved by the main lender SBI, in the National Company Law Tribunal, Hyderabad, went through the Corporate Insolvency Process under the Insolvency and Bankruptcy Code, 2016.
After the Committee of Creditors, which went through the assessment of the plan, rejected the proposal, the Resolution Professional has been asked to file a petition for liquidation, a process that comes into play if the resolution process fails.
The Committee of Creditors, which had factored some of the changes in the documents of Expression of Interest and bid process, decided to reject the plan due to lack of requisite majority. As there was no valid Resolution Plan application for the company as per the terms and conditions of the Expression of Interest and bid process memorandum documents, the CoC requested the RP to file an application with the NCLT to end the CIRP period for liquidation of IVRCL on a going concern basis.
Source: Business Line, November 21,2018