National Company Law Tribunal(NCLT)’s principal bench admitted an insolvency plea on Monday against the infrastructure firm Amrapali Infrastructure, filed by Bank of Baroda.
BOB approached NCLT after the Amrapali group firm defaulted on Rs 97.30 crore loan. NCLT is now going to appoint an insolvency resolution professional (IRP) to take over the company. IRP will get 270 days to revive the company, failing to this, company’s assets will be dissolved and proceeds will move towards repaying the loan.
BOB moved NCLT on August 10 to initiate insolvency proceedings against the firm Amrapali Infrastructure under Insolvency and Bankruptcy Code (IBC). Hearing of the case was on the same day, but the court reserved its order and announced it on Monday.
Amrapali Infrastructure deals in leasing the construction equipment and the factory is located in Greater Noida that makes column beams and hollow core slabs for affordable housing projects.
“We will look for a resolution in this matter within next 3-5 months after the appointment of IRP. Many companies are interested in taking stake in Amrapali Infrastructure,” Shiv Priya, a director of Amrapali group said.
Priya added that the company had made an investment of around 500 crore rupees in factory. “We have applied for restructuring the loans of the company with the bank and requested for extra time to repay the dues. However, the bank refused our request and moved to the NCLT,”.
Bishwajit Dubey from Law firm Cyril Amarchand Mangaldas appeared for Bank of Baroda in this case. Magma Fincorp and Tata Capital Financial Services had also filed cases separately in NCLT to initiate the insolvency proceedings against Amrapali Infrastructure, claiming of being financial creditors to the infrastructure company. They will now file their claims in front of the IRP.