Banks seek 90-day extension in resolution process of cos on RBI\'s first list under IBC

作者:STEPHANIE 時間:2018-01-12 05:51:19 標籤: 分類:

Banks are seeking a 90-day extension from NCLT for resolution process of some of the defaulters on RBI's first list of insolvency and bankruptcy (IBC) cases as the lenders feel they may not have sufficient time to reassess defaulters under the new IBC norms, reports CNBC-TV18. 

First IBC defaulters list had a deadline of 180 days to resolve these cases that was to expire in January and February. However, this deadline can be extended by 90 days. An extension will give banks two more months to finanlise a resolution plan against defaulters.

To seek this extension, the Committee of Creditors (CoC) with the interim resolution professional (IRP) will have to move the NCLT, following which, the timeline would be extended to the end April or May.

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Sources told CNBC TV18 that JP Infra, Electrosteel Steels, Alok Ind, Amtek Auto lenders are also seeking a 90-day extension.

NCLT has already granted a 90-day extension for Monnet Ispat and Jyoti Structures, sources said.

The Insolvency and Bankrutpcy Code (Amendment) Bill, 2017, that debars willful defaulters and existing promoters from bidding for stressed assets of companies undergoing insolvency proceedings, was passed in the Lok Sabha in December last year.

So far, as  many as 470 cases are admitted by the National Company Law Tribunal (NCLT) under the IBC, which was put in place in 2016. Most experts are keenly watching the outcome of the first set of 12 big corporate defaulters that lenders have sought to resolve under the RBI’s directive in June last year.

In the first phase, as many as 12 companies that collectively owe Rs 2.5 trillion or a quarter of the total bad loan mess of Rs 10 trillion, are under bankruptcy resolution. These companies include Bhushan Steel, Essar Steel, Bhushan Power & Steel, Lanco Infratech, Monnet Ispat and Electrosteel, Amtek Auto among others were referred by the RBI for resolution under this law.


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