The National Company Law Tribunal, Hyderabad, has admitted an application for corporate insolvency resolution against Lanco Babandh Power Limited.
NCLT Judicial Member Bikki Ravindra Babu admitted the petition by ICICI Bank for insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 and directed issue of notices to various parties, including the financial creditor, corporate debtor and the interim insolvency resolution professional.
The NCLT appointed U Balakrishna Bhat as the insolvency resolution professional and directed him to make a public announcement of the corporate insolvency resolution process initiated against the power company, a subsidiary of Lanco Infratech Limited, which is facing a liquidation process order.
The tribunal ordered that moratorium shall be in force from the date of order till the completion of corporate insolvency resolution process.
Lanco Babandh is developing a 1,320 MW coal-fired project in Odisha, which it claimed is 60 per cent complete.
But the lenders maintain that the progress was sluggish and there were defaults.
Even though the debtor contended that it had presented a comprehensive business reorganisation scheme, which was agreed to by the seven top lenders, and approval from other lenders in the consortium had not forthcoming, this resulted in breach of terms and conditions of the agreements.