NCLT admits SBI’s insolvency application against Electrosteel Steels

Kolkata, July 21 (IANS) The Kolkata bench of the National Company Law Tribunal (NCLT) on Friday issued an interim order admitting State Bank of India's (SBI) insolvency application against the city based Electrosteel Steels Limited for initiating the corporate insolvency resolution process.

"The petition filed by the Financial Creditor (in the case SBI) under section 7 of the Insolvency & Bankruptcy Code (IBC), 2016 is hereby admitted for initiating the corporate resolution process and declare a moratorium and public announcement...," the order said.

According to the order, Dhaivat Anjaria of PwC has been appointed as Interim Resolution Professional (IRP) for ascertaining the particulars of creditors, convening a committee of creditors for evolving a resolution plan and submit the resolution passed by the committee.

Electrosteel Steels is among the 12 NPA (non performing asset) accounts identified by the RBI, initially, to be referred under the IBC, 2016.

Citing the petitioner's filing relating to the Independent Auditor's Report on financial results of the corporate debtor, the order said the corporate debtor company incurred a net loss of Rs 1,463.48 crore during the year ended March 31, 2017 and as of that date, its current liability exceeded its current assets by Rs 5,552.32 crore.

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