Promoters staying wary from bidding for firms in NCLT - Report
Financial Express, citing sources with direct knowledge of the development, reported that majority of the promoters of the 11 large accounts that were admitted by the National Company Law Tribunal (NCLT) for insolvency proceedings have stayed away from bidding for their assets despite having the option to do so by paying the overdue amount,. The report quoted a sources as saying that “We haven’t really seen any interest from the promoters in placing bids for their assets. They have largely stayed away from the process.”
A senior banker with a large public sector bank told FE that “There is no guarantee that the promoters will gain back control of their assets even after paying the overdue amount. This is a major deterrent for them. Their bids will be evaluated along with the other bids and the best resolution plan would be recommended to the NCLT.”
The government, through the Insolvency and Bankruptcy Code (Amendment) Bill, 2017 barred promoters of accounts that have been classified as non-performing assets for at least a year from submitting resolution plans. However, if these promoters make payments for the overdue amount, they would become eligible to submit resolution plans. The promoters have been given a period of 30 days to make the payments.
The 11 accounts that are undergoing insolvency proceedings at the NCLT are
Bhushan Power and Steel
Monnet Ispat and Energy
Source : Financial Express