Maruti Ferrous Pvt. Ltd’s plan to acquire bankrupt Sunil Ispat and Power has been okayed by the National Company Law Appellate Tribunal (NCLAT), The Economic Times said. The steel products maker had submitted a modified resolution plan to include the operational creditors.
Lenders to the debt-laden firm will recover half of the principal amount they had lent to Kolkata-based Sunil Ispat and Power.
Total dues claimed in the court were about Rs 36 crore, which Sunil Ispat and Power owed to Hudco, Asset Reconstruction Company (India), Syndicate Bank, Bank of Baroda and Central Bank of India, among others.
Four months back, the National Company Law Tribunal (NCLT), too, had had given its approval for Maruti Ferrous’ plan.
With the appellate tribunal's nod, the factory would reopen for production after seven years.
An estimated 200 people can be employed in the company’s factory located in Raigarh. Kolkata-based Arun Gupta was the resolution professional in the insolvency case, the report said.
If only the principal amount loaned is considered, the lenders will have to forgo half of the amount, Gupta said.