McNally Bharat Engineering has a new suitor as NCLAT allows Rashmi Metaliks to submit bid
The National Company Law Appellate Tribunal (NCLAT) has allowed Rashmi Metaliks Ltd to submit resolution plan by 11 January in the corporate insolvency resolution process of McNally Bharat Engineering.
The appellate tribunal allowed Rashmi Metaliks to submit the resolution plan despite it filed the application much later than the last date for submission of the plans (5 December) was over. The NCLAT allowed Rashmi Metaliks to submit the plan as the committee of creditors is ready to consider the Resolution Plan to be submitted by the company.
The tribunal in its order directed Rashmi Metaliks to submit the EMD 9th January 2023 and the Resolution Plan by 11th January 2023. It also said that the appellant will not ask for any further extension of any of the above conditions.
Rashmi Metaliks had filed expressed its interest in bidding for McNally Bharat Engineering on 17 December even though the last date for submitting bids were on 5 December 2022.
The resolution professional rejected its offer after which Rashmi Metaliks moved NCLT on 28 December requesting the adjudicating authority to allow it to submit the resolution plan within three days. It contended that it came to know about the CRP of McNally Bharat Engineering only on 17 December and on the same they informed the resolution plan that it wanted to submit bids for the corporate debtor.
However, NCLT rejected its plea “keeping in view the significance of timelines prescribed by law to achieve the objective of maximization of value of assets”.
Later, Rashmi Metaliks moved NCLAT and got the order in its favour.
Now with Rashmi Metaliks also in the fray, there are now four suitors for the Kolkata-based McNally Bharat Engineering Company Ltd.
The company was dragged into insolvency court by Bank of India for defaulting on a payment of Rs 479 crore in May 2022. McNally Bharat Engineering 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).
Also see: Three bidders in fray for McNally Bharat Engineering
