The Kolkata bench of the National Company Law Tribunal (NCLT) on Tuesday approved the resolution plan of the Britain-based Liberty House for acquiring debt-laden steelmaker Adhunik Metaliks under the Insolvency and Bankruptcy Code (IBC).
The lenders' committee had approved the plan on the last day of the extended timeline for the corporate insolvency resolution process (CIRP) for the steelmaker recently.
"...the revival plan of the company in accordance with the approved resolution plan shall come into force with immediate effect," the bench said.
There were only two resolution applicants for debt-laden steel manufacturer Liberty House, part of Sanjeev Gupta-led GFG Alliance, and Maharashtra Seamless of the DP Jindal Group.
The Sanjeev Gupta-led metals and industrial company was identified as the highest bidder (H1) by the creditors, while the plan of Maharashtra Seamless was rejected due to the offering being of lesser value than the liquidation value of the company.
Notably, the bankruptcy proceedings against Adhunik Metaliks, Zion Steel and another Adhunik Group company, Orissa Manganese & Minerals Ltd (OMML) were admitted by the Kolkata bench of NCLT in August last year.
Lenders to the insolvent company are State Bank of India, Punjab National Bank, UCO Bank, Allahabad Bank, Punjab & Sind Bank, Bank of Baroda, Corporation Bank, ICICI Bank, IFCI and SREI Infrastructure Finance, among others.
In this case, as many as 18 financial creditors submitted claims worth over Rs 5,380 crore, while claims over Rs 5,370 crore were admitted.