Three bidders in fray for McNally Bharat Engineering
Three bidders are in the fray for Kolkata-based McNally Bharat Engineering Company Ltd, which is undergoing corporate insolvency resolution process.
The company informed the stock exchanges that the resolution professional – Ravi Sethia — has advised the Company regarding receipt of three resolution plans from prospective resolution applicants on 5th December 2022.
The company was dragged into insolvency court by Bank of India for defaulting on a payment of Rs 479 crore in May 2022.
The Committee of Creditors (CoC) held e-voting on one of the resolution plans on 6 December 2022, while other resolution plans would be discussed in the 10th meeting of the CoC to be held on 12th December 2022.
McNally Bharat Engineering Company owes Rs 4,841 crore to financial creditors. The highest claims of Rs 725 crore have been submitted by Bank of India, followed by Axis bank (Rs 544 crore) and State Bank of India (Rs 510 crore). Other major claimants include IDBI bank (Rs 377 crore) and ICICI bank (Rs 366 crore).
McNally Bharat Engineering Company Ltd is engaged in providing turnkey solutions in the areas of Power, Steel, Coal & Mining, Ports, Aluminium, Material Handling, Mineral Processing, Cement, Water, Oil & Gas and Infrastructure sectors such as Buildings & Townships, High Rises, Roads, Metro, Rail etc. The Company has constructed over 350 plants on a turnkey basis till date.
Promoted by Aditya Khaitan and family, the promoters hold 32.79% in the company. On a standalone basis, McNally Bharat Engineering Company posted Rs 316 crore in FY 2022 and a net loss of Rs 77 crore. In the previous year, the company had posted net losses of Rs 50 crore on a revenue of Rs 355 crore.
On a consolidated basis, the company has reported net loss of Rs. 120 crore during the year ended 31st March 2022.
McNally Bharat Engineering has two Indian subsidiaries — McNally Sayaji Engineering Limited and McNally Bharat Equipments Limited. McNally Sayaji Engineering Limited has one subsidiary — MBE Coal & Mineral Technology India Private Limited. The Company has two overseas subsidiaries — MBE Mineral Technologies Pte Limited and MBE Minerals Zambia Limited.
The Company is the Lead Partner in three Joint Ventures – McNally-AML, McNally-Trolex and McNally-Trolex-Kilburn.
The company has already lost its subsidiary McNally Sayaji Engineering Ltd. which also went through insolvency proceedings.
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