As UK-based Liberty House failed to make the upfront cash payment of `410 crore even within the extended timeline, aggrieved lenders on Tuesday finally appealed before the National Company Law Tribunal (NCLT) for the re-initiation of the corporate insolvency resolution process (CIRP) for bankrupt Adhunik Metaliks (AML).
In his submission before justice Madan B Gosavi of the NCLT Cuttack bench, Joy Saha, the counsel for the committee of creditors (CoC) for AML, appealed to re-initiate CIRP as Sanjeev Gupta-led Liberty House had not paid the required upfront cash payment of `410 crore to lenders by April 14, the stipulated deadline set by the National Company Law Appellate Tribunal (NCLAT), for the acquisition of debt-ridden AML.
Liberty House’s counsel said the group would need more time for making the payment as regulatory approvals were still pending for Adhunik Metaliks. When contacted, a spokesperson of LHG said, “Regulatory approvals from the stock exchanges are still pending for Adhunik Metaliks in order to receive money under CIRP from us. We are working on procuring this statutory and regulatory approvals, which are a vital part of the implementation plan.”
After hearing the arguments, justice Gosavi adjourned the matter till May 14 for a detailed hearing. FE earlier reported that the lenders were planning to appeal before the NCLT to restart the CIRP process by inviting fresh bids for the steel manufacturing company.
Lenders to Adhunik Metaliks are SBI, Punjab National Bank, ICICI Bank, IFCI, Punjab & Sind Bank, UCO Bank, Allahabad Bank, Bank of Baroda, Corporation Bank and SREI Infrastructure Finance, among others. The Kolkata bench of the NCLT had in July last year approved the resolution plan submitted by Liberty House, with lenders agreeing to take a haircut of around 92% and settling for `410 crore against their outstanding dues of `5,370 crore.
There were only two resolution applicants for the debt-ridden steel manufacturing company — Liberty House and Maharashtra Seamless of the DP Jindal Group. LHG was identified as the highest bidder (H1) by the creditors, while the plan of Maharashtra Seamless was rejected as it was offering less value than the liquidation value of the company.
Notably, the LHG had earlier failed to meet the deadline for payment under CIRP within the stipulated time for Amtek Auto, prompting the tribunal to allow its lenders to go for a fresh round of bidding.
Source: Financial Express, May 1, 2019