As Indian banks grapple with nearly $150 billion in bad loans, various branches of the National Company Law Tribunal (NCLT) have admitted about 730 bankruptcy cases since the Insolvency and Bankruptcy Code (IBC) came into effect two years ago.
In the ongoing series of weekly round-ups on insolvency cases, we check the status of the top cases that made news this week.
While the Hyderabad High Court shelved an NCLT order initiating insolvency proceedings against Ramky Infrastructure, the tribunal approved Liberty House’s buyout of Adhunik Metaliks and Monnet Ispat’s sale to a JSW-AION consortium.
The NCLT’s Hyderabad bench gave the go-ahead for JK Paper’s takeover of the bankrupt Sirpur Paper Mills.
The Hyderabad High Court this week suspended an order passed by the NCLT, which had initiated insolvency proceedings against the infrastructure company over non-payment of dues to a supplier, Todi Minerals.
The matter will be heard in the court in the first week of August.
According to the mining firm, Ramky Infrastructure owed it dues for borrowing equipment and filed insolvency proceedings against it to reclaim the rent. However, Ramky claimed that it never entered into an agreement with the mining firm and its employees.
This week, the NCLT approved UK's Liberty House takeover of steelmaker Adhunik Metaliks. The Rs 500-crore resolution plan by Liberty House was previously approved by the creditors.
Liberty House is also in the race for Zion Steel and Bhushan Power and Steel (not the same as Bhushan Steel), where it faces competition from Tata Steel Ltd, which in May acquired Bhushan Steel.
The NCLT approved the sale of the bankrupt metals firm to a consortium of steelmaker JSW Steel Ltd and distressed assets player AION Capital.
The Rs 2,875-crore resolution plan was approved at a hearing in NCLT Mumbai on Thursday.
The consortium will hold 75% stake in Monnet Ispat, of which 70% will be held by AION and the remaining 30% by JSW Steel.
Sirpur Paper Mills
The NCLT’s Hyderabad bench approved a proposal by paper manufacturer JK Paper Ltd for a takeover of the bankrupt paper mill firm.
The approval came in record 50 days since receiving the resolution plan from JK Paper.
JK Paper had submitted its resolution plan on May 29.