Lenders approve BTL EPC resolution plan for McNally Bharat Engineering

The Committee of Creditors of McNally Bharat Engineering Company Limited has approved the resolution plan submitted by BTL EPC Ltd. A Letter of Intent (LOI) has been issued to BTL EPC Ltd. The approval of the plan is subject to its approval by the Kolkata Bench of the National Company Law Tribunal (NCLT) in accordance with the provision of Insolvency and Bankruptcy Code, 2016, the company said in an exchange filing.

BTL EPC was in a neck-to-neck fight with Naveen Jindal-promoted Nalwa Steel for acquiring McNally Bharat Engineering. It has been reported that resolution plans of both Nalwa Steel and Power and Shrachi Group-promoted BTL EPC received 90.16% vote share.

McNally Bharat Engineering was dragged to insolvency court by Bank of India for defaulting on a payment of Rs 479 crore in May 2022.

The 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).

About BTL EPC

BTL EPC is a multidisciplinary Engineering Procurement and Construction group with diverse interests. The company ventured into the EPC sector in 2006. Within a very short span, the company has won new businesses and added significant skills in design, engineering & execution of projects in bulk material handling plant, coal & chemical plant, process equipment, metal & mineral beneficiation, environment management, metal preparation, and steel plant utilities.

About McNally Bharat Engineering

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.

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