Lenders to seek extension of Rolta India CIRP period by 60 days
The resolution professional of Rolta India will ask for a 60-day extension of the corporate insolvency resolution process. The Committee of Creditors in its 12th meeting on 25 September 2023 discussed the extension of CIRP period beyond 270 days for a further period up to 60 days as per the provisions of Insolvency and Bankruptcy Code, 2016 and making necessary application with Adjudicating Authority, the company said in an exchange filing.
The CIRP process began on 19th January 2023, and according it is nearing the 270-day completion deadline.
The insolvency proceedings against Rolta India has been initiated by Union Bank of India as the former defaulted on a payment of Rs 1,413 crore to a consortium of lenders comprising Union Bank of India and Bank of India. The NCLT admitted the insolvency petition on 19 January 2023.
The meeting also discussed the legal and commercial viability of the Resolution Plan submitted by Rashmi Metaliks. In its meeting the Committee of Creditors had deliberated on the Resolution Plan by Rashmi Metaliks, and had asked it to revise the plan.
Rolta is a provider of IT solutions to different set of clients, including Federal and State Governments, in defence and homeland Security, utilities, power, financial services, manufacturing, retail, and healthcare.
The company made a net loss of over Rs 1,000 crore in FY22 on a revenue of Rs 38 crore. In the previous year, the company had reported net losses of over Rs 3,000 crore.
At the end of FY22, the company had total debt of Rs 5,700 crore with Union Bank of India and Bank of India accounting for over Rs 3,000 crore of the total loans.
The company owes Rs 14,000 crore to its different creditors, including Rs 13,700 to its secured and unsecured creditors. Among secured creditors Union Bank of India with Rs 2,262 crore admitted claims has the highest voting share of 17.21%. Among unsecured creditors, Citicorp International Limited (as trustee) has the highest claims of Rs 4,613 crore and a voting share of 35%.
Mamta Binani is the resolution professional in this case.
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