Home Urban Infrastructure News Steel & Metal Building News NCLT extends time period for Corporate Insolvency Resolution Process for Electrosteel Steels...

    NCLT extends time period for Corporate Insolvency Resolution Process for Electrosteel Steels Limited

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    NCLT

    The order was passed by the Kolkata Bench of NCLT on December 19, 2017, Electrosteel Steels informed the BSE on Thursday . The scrip rose 0.18% to Rs 5.50 on the exchange on Thursday .

    The Kolkata-based company is saddled with a debt burden of Rs 10,274 crore, an amount it owes to a consortium of banks led by SBI. It has been facing insolvency proceedings under after it was admitted in the NCLT in July 2017. . ESL which has a 2.5 million tonne steel plant at Siyaljori in Jharkhand’s Bokaro district, attracted six expressions of interest from bidders like Mesco group, Tata SteelBSE -0.30 %, Srei Infrastructure Finance and Dalmia group among others, following the memorandum floated by the IRP for Electrosteel Steels Dhaivat Anjaria in September, 2017.The COC members in a meeting on November 16, 2017 decided to issue an addendum to the advertisement to allow all prospective resolution applicants who had not submitted Eolis earlier to submit their EoIs. Subsequently, the last date for filing resolution plan for the company was stipulated as December 11, 2017.

    The latest NCLT order said the IRP had filed an application for extending ESL’s insolvency resolution process by 90 days w.e.f January 17, 2018 on the basis of the recommendation at the meeting of the Committee of Creditors (CoC)on December 6, 2017. The order by NCLT members Vijai Pratap Singh and K R Jinan stated that a “copy of the minutes of the meeting shows that the ve share of 99.82% CoC has approved the resolution for extending the insolvency resolution process by 90 days.” In view of the recommendation of the CoC, NCLT said it extended the moratorium period by 90 days for submissions of the resolution process.

    Read More: MBL infrastructure promoter eligible to bid for company, says NCLT

    Info: economictimes

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