The Resolution Professional of the debt-laden IVRCL has invited expression of interest for a resolution plan.
The Hyderabad-based infrastructure company is now a matter of adjudication in the National Company Law Tribunal, facing recovery proceedings after it was taken up for the Corporate Insolvency Resolution Process as per the provisions of the Insolvency and Bankruptcy Code, 2016.
The NCLT in its order dated February 23, 2018, had taken up the matter.
Sutanu Sinha, Resolution Professional for IVRCL, has invited expression of interest from potential resolution applications for submission of a resolution plan as per the provisions of the Insolvency and Banking Code, giving time till May 24 to submit their plan.
However, he makes it clear that the terms and conditions for inviting the resolution plan is determined with the approval of Committee of Creditors of IVRCL and may be changed. The Committee or Resolution Professional reserve the right to cancel or extend the process or even disqualify any resolution applicant.
In some of the ongoing similar cases, there have been instances of the Committee of Creditors rejecting plans and seeking new applicants. The move to invite expression of interest for the resolution plan comes in the backdrop of the company being taken to the NCLT by its bankers after the company failed to pay up its dues and the business and the company performance was adversely impacted due to lack of working capital.
In the past, efforts to resolve the company debt through a Corporate Debt Restructure process and Strategic Debt Restructure process failed to achieve the desired result.
The company, once known to be amongst the major infrastructure players in the country, both under BOT projects and EPC, has been finding the going tough from the past five-six years and landed up in the NCLT, Hyderabad.
In another development in a matter related to IVRCL, the NCLT, Hyderabad, has declared ‘non-est’, a decision taken by the Resolution Professional regarding an arbitration matter between Jharkhand Bijli Viltran Nigam Ltd and IVRCL.
There were claims of ₹621 crore, across three contracts, by IVRCL against Jharkand entity, which in turn had made a counter claim of ₹2746.5 crore. The matter was taken to arbitration. In a petition filed by SBI, the NCLT had declared a moratorium against some cases outside its purview. The Resolution Professional issued a latter requesting the Arbitral Tribunal to continue proceedings for both the claim and counter-claim on the ground that it is in the interest of the corporate debtor of IVRCL.
Following this, NCLT held that since there was moratorium, no proceedings can be filed against the corporate debtor, the letter of RP permitting proceeding with the counter-claim filed by Jharkhand entity, was non-est.