The Committee of Creditors (CoC) of Adhunik Metaliks on Thursday approved the resolution plan of UK-based Liberty House with a majority of 99.94 per cent.
Sumit Binani, the resolution professional (RP), will present the plan before the Kolkata bench of the National Company Law Appellate Tribunal (NCLAT) for further approval and passing necessary order in the matter, the company said in a notification to stock exchanges on Thursday.
In Adhunik’s case, there were only two resolution applicants: Liberty House and the DP Jindal Group company Maharashtra Seamless.
While the former was selected as the eligible highest (H1) bidder, issues cropped up under Section 29A of IBC. Under this Section, a bidder can be disqualified for several reasons, including a loan default in any of the company’s subsidiaries.
The 270-day deadline granted to the bankrupt company under the corporate insolvency resolution process (CIRP) expired on April 29.
It is to be noted that with no resolution plan been approved by the CoC, the RP had earlier sought “exclusion” of 20 days from the mandatory 270-day timeframe required to complete the process. Accordingly, the NCLAT had granted extension of timeline.