The National Company Law Appellate Tribunal (NCLAT) has given UK-based Liberty House group one more chance to offer a resolution plan for bankrupt Adhunik Metaliks and Zion Steel. In an order issued on 7 January, the NCLAT directed Sanjeev Gupta's Liberty House to file an affidavit by 9 January outlining its proposal for the Rs460 crore resolution plan and the timeframe for the same.
The committee of creditors and the official liquidator for the companies are to reply by 14 January. The NCLAT will pass final orders on 17 January.
The bench, headed by Justice SJ Mukhopadhyay, asked the group to file an affidavit stating that it was willing to deposit Rs410 crore and an additional Rs10 crore in lieu of the delay in payment. Liberty House has already paid ₹50 crore of the ₹460 crore upfront payment agreed to creditors.
While the Cuttack bench of National Company Law Tribunal passed liquidation orders for the two companies after Liberty House failed to meet the deadline for the upfront payment, this was stayed by the NCLAT in July following an appeal by Liberty House. The two companies have total outstanding debt of more than Rs5,000 crore.