scorecardresearch
Follow Us:
Monday, September 20, 2021

NCLT orders Siva liquidation

The resolution plan was earlier cleared by the committee of creditors (CoC) led by IDBI Bank.

By: ENS Economic Bureau | Mumbai |
August 13, 2021 3:23:57 am
The NCLT had earlier asked lenders to explain the huge haircut in one-time settlement (OTS) plan approved by the CoC. (File Photo)

The National Company Law Tribunal (NCLT) Chennai has rejected the debt resolution proposal of Siva Industries, promoted by C Sivasankaran, and ordered the liquidation of the company.

Rejecting the proposal, the Bench said, “We conclude that this is not a proposal under Section 12A, but rather a restructuring proposal. There is no offer, nor a final acceptance. There is only ambiguity about the offer, hence this application stands dismissed.”

The resolution plan was earlier cleared by the committee of creditors (CoC) led by IDBI Bank. The NCLT said the settlement offer made by RCK Vallal, one of the shareholders of the company and father of Sivasankaran, does not conform to Section 12A of IBC.

The NCLT had asked lenders to explain the huge haircut in one-time settlement plan approved by the CoC. As part of the proposal, banks will get 6.5 per cent of debt of Rs 4,863 crore from the offer made by the Sivasankaran family.

The family offered to pay Rs 5 crore upfront and the rest within 180 days of approval.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
Advertisement
Advertisement
Advertisement
Advertisement