NCLT puts Nicco under liquidation process to meet creditors’ demands
Kolkata: The Kolkata bench of National Company Law Tribunal (NCLT) has put cable manufacturer Nicco Corporation Ltd under liquidation process to meet the demands of the creditors.
The company has been put under liquidation under Section 14 of the Insolvency and Bankruptcy Code (IBC). Nicco was the first company to be referred to NCLT after the BIFR was scrapped.
“It is the management which referred Nicco to NCLT, not the bankers”, non-executive chairman of Nicco Rajive Kaul told PTI.
Kaul said “we are really surprised to see that the company is going for liquidation even though we tried our best to avert that. The workers will be in distress due to loss of jobs”.
There were nearly 600 workers and employees, comprising blue and white collars, engaged at its two facilities in Shyamnagar (West Bengal) and Baripada (Odisha).
The resolution professional (RP) for Nicco Corporation, Kunal Banerjee, said that liquidation could not be avoided as the stipulated 270 days time had passed and the lenders had rejected the revival package submitted by the company management.
The company had asked for some interest rate concessions on the loans taken from the banks and no discount on the principal amount.
Nicco borrowed around Rs186 crore from several banks, the majority amount being from State Bank of India.
- Pakistan violates ceasefire along LoC in Uri sector of Jammu and Kashmir
- Taliban militants attack Afghan army post in Farah killing 18 soldiers
- Arun Jaitley slams regulators, auditors for Rs11,400 crore PNB fraud
- New H1B visa policy will protect workers, prevent any fraud: USCIS
- IndiGo to shift part of its operations from IGI’s T-1 to T-2 after SC order