NCLT issues notice to Asian Colors Coated on SBI plea
NCLT issues notice to Asian Colors Coated Ispat Ltd in a plea by SBI for initiating insolvency proceedings over a Rs3,900 crore default
New Delhi: The National Company Law Tribunal (NCLT) on Tuesday issued notice to Asian Colors Coated Ispat Ltd (ACCI) in a plea by State Bank of India, leader of its lenders’ consortium, for initiating an insolvency proceedings over a Rs3,900 crore default.
ACCI is one of the corporate debtors identified by Reserve Bank of India in August 2017.
ACCI objected to SBI’s plea on the ground that it had already placed a resolution proposal before a committee of creditors, which was subsequently rejected by them.
SBI had moved NCLT in January for initiation of insolvency proceeding against ACCI. However, the proceedings before NCLT were stalled as the company had approached the Delhi high court to work out a resolution proposal with a committee constituted by the consortium of lender banks.
Apart from SBI, the consortium consisted of Union Bank of India, Bank of Baroda and Indian Overseas Bank.
Justice Rajiv Shakdher had directed ACCI to deposit Rs700 crore as security before making a proposal to the committee of lenders. Since no such deposit was made by ACCI, the committee rejected ACCI’s resolution proposal on 15 February.
The matter is listed for further consideration on 23 March.
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