Mumbai: An interim resolution professional (IRP) for Bhushan Power and Steel Ltd has sought a potential resolution plan from prospective investors, according to a newspaper advertisement.
Mahendra Kumar Khandelwal was appointed as the IRP in the case under an order passed by the National Company Law Tribunal (NCLT) on 26 July. “Any potential resolution applicant who is desirous of submitting a resolution plan as above, is required to provide the relevant qualification documents to establish satisfaction of the qualification requirements, on or before October 6,” the advertisement said.
Bhushan Power, which owes over Rs37,000 crore to a consortium of lenders led by Punjab National Bank, was among 12 large companies identified by the Reserve Bank of India against which banks were directed to initiate insolvency proceedings. Barring Era Infra Engineering Ltd, petitions have been admitted in all other cases.
According to the Insolvency and Bankruptcy Code, 2016, upon admission, the board of the company is suspended and IRP is responsible for the daily management of the company.
The IRP has to come up with a resolution plan within 180 days, extendable by another 90 days, of the admission of the petition. If the account is not resolved, the firm goes into liquidation. The resolution process in most of these 12 cases have started with IRPs seeking interim financing as well as potential buyers for takeover of the company.