Raipur-based consultancy bags govt-owned SAIL-SCL Kerala for Rs 30 crore

Raipur-based consultancy firm Chhattisgarh Outsourcing Services Pvt Ltd has won the bid for government owned SAIL-SCL Kerala Ltd. The Kochi bench of the National Company Law Tribunal (NCLT) has approved the Rs 30 crore resolution plan submitted by Chhattisgarh Outsourcing Services Pvt Ltd. Earlier, December last year, the committee of creditors had approved the resolution plan by 100% vote share.

As per the resolution plan, secured creditors will receive Rs 25 crore against their admitted claims of Rs 118 crore. Of the Rs 25 crore, 25% would be paid within 30 days and the balance 75% within 6 months from the record date. Workmen and employees will receive Rs 2 crore of their total admitted claims of Rs 5.35 crore. The plan also include payment of Rs 2.5 crore as government dues.

The liquidation value of assets of SAIL-SCL Kerala were valued at Rs.19.13 crore, while the average fair value was estimated to be Rs 72.93 crore. The company owed a total of Rs 145.42 crore to different creditors.

The insolvency proceedings against SAIL-SCL Kerala, a 50-50 joint venture between Central government-owned Steel Authority of India Ltd (SAIL) and the government of Kerala, was initiated by Canara Bank March 2023 after the corporate debtor defaulted on a payment of Rs 107 crore.

SAIL-SCL Kerala became a government company in the year 1979. On account of unviable financial performance, the Company was referred to BIFR in 1992. In 2008, Government of Kerala entered into a Joint Venture Agreement with SAIL to jointly develop the company and in pursuance thereof the company became a Joint Venture [JV] of Government of Kerala and SAIL on 28 December 2010. The JV Agreement conceived the establishment of a Rolling Mill for ensuing the viable performance of the company in accordance with the proposal in the modified BIFR Rehabilitation Scheme.

Also See: Govt-owned SAIL-SCL Kerala to face insolvency proceedings