NCLT clears liquidation of Gupta Coal India; had debt of Rs 2580 cr

11 December 2017

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the liquidation of Gupta Coal India, sources aware of the development told FE. The Nagpur-based firm had filed a petition for the initiation of insolvency proceedings and was admitted by the NCLT on March 9. A mail sent to the company remained unanswered till the time of going to press. The company owes lenders close to `2,580 crore, according to the NCLT order on March 9. Around 13 banks, led by Bank of India, are believed to have loaned the company money. Gupta Corporation, Gupta Global Resources and Gupta Energy are already under corporate insolvency resolution process.

The resolution professional appointed for Gupta Coal India, Abhay Manudhane, a partner at Waterfall Insolvency Professionals, has also been appointed as the liquidator in the case. Two other companies, Gupta Infrastructure and Gupta Infra-tech, may also be admitted to the NCLT soon, sources indicated. Gupta Coal operates as a subsidiary of Gupta Group and Padmesh Gupta and Piyush Marodia are among its directors. According to people dealing with the firm, the company imports and supplies coal to end users in power, steel, paper, sugar, and other sectors. It also provides logistics services. Once a company is admitted to the corporate insolvency resolution process, the court appoints an interim resolution professional (IRP) who takes over the company. A committee of creditors is formed. The IRP has 180 days to find a buyer for the firm failing which the deadline can be extended by three months. If no resolution is reached within this period, the firm is ordered to be liquidated.

The resolution professional appointed for Gupta Coal India, Abhay Manudhane, a partner at Waterfall Insolvency Professionals, has also been appointed as the liquidator in the case. Two other companies, Gupta Infrastructure and Gupta Infra-tech, may also be admitted to the NCLT soon, sources indicated. Gupta Coal operates as a subsidiary of Gupta Group and Padmesh Gupta and Piyush Marodia are among its directors. According to people dealing with the firm, the company imports and supplies coal to end users in power, steel, paper, sugar, and other sectors. It also provides logistics services. Once a company is admitted to the corporate insolvency resolution process, the court appoints an interim resolution professional (IRP) who takes over the company. A committee of creditors is formed. The IRP has 180 days to find a buyer for the firm failing which the deadline can be extended by three months. If no resolution is reached within this period, the firm is ordered to be liquidated.

Source: Financial Express