CoC replaces IRP of Technofab Engineering; appoints Atul Mittal as RP
The committee of creditors of Technofab Engineering Limited voted to replace interim resolution professional Pradeep Kumar Kabra with resolution professional Atul Mittal. The CoC voted for replacing the IRP with Atul Mittal by a vote share of 86.56%, the company informed the exchanges.
The corporate insolvency resolution process (CIRP) has been initiated against Technofab Engineering Limited in November 2022.
The New Delhi bench of the National Company Law Tribunal (NCLT) on 18 November 2022 admitted the insolvency application against Technofab Engineering Limited filed by public sector bank State Bank of India (SBI). The application was filed by SBI after Technofab Engineering defaulted on a payment of Rs 67.60 crore.
The creditors of the company have so far filed claims of Rs 758 crore. The IRP has so far admitted claims of Rs 678 crore. Financial creditors have so far submitted claims of Rs 704 crore, of which Rs 650 crore has been by the IRP.
Among the financial creditors, Bank of India has submitted the highest claim of Rs 284 crore followed by Bank of Baroda (Rs 148 crore) and State Bank of India (Rs 87 crore).
Technofab Engineering is over 45-year-old engineering and construction company, serving the power, industrial and infrastructure sectors, by executing comprehensive balance of plant (BOP) and auxiliary systems on a complete Turnkey EPC basis.
The company posted a turnover of Rs 115 crore in 2021-22 compared to that of Rs. 38 Crore in the previous year. It incurred a loss of Rs. 79.78 crore in 2021-22 compared to the loss of Rs. 127.94 crore incurred in the previous financial year.
Technofab Engineering was unable to complete various projects in time, performance bank guarantees of the company were also invoked by other parties, and non-recovery of its funds due to various reasons and hence defaulted on repayment of dues to lenders, consequently the lenders had classified the loan balances of the company as nonperforming assets.
Upon the account becoming NPA, the banks have stopped charging interest from July-2019.
As per auditors’ calculation unprovided/uncharged interest for the quarter ended 31 March 2022 was Rs. 10 crore and total unprovided/uncharged interest from July-2019 to March 2022 is Rs.103 crore.
The net worth of the company is negative as at 31st March 2022. The Company has delayed/defaulted in payment of loans and interest and loan accounts have been classified as non-performing assets by banks.
The company is listed on BSE, and has a public shareholding of over 51% with FIIs/FPIs holding around 5% of the company shared. The company is promoted by Arjun Gupta and his family.
Also Read: NCLT gives nod to initiate insolvency proceedings against Technofab Engineering
