Troubled steel maker Impex Metal and Ferro Alloys is set to get a second life with National Company Law Tribunal (NCLT) deciding not to pursue liquidation of the company as being contemplated.
In an "exceptional case", as described by the judge, the Kolkata bench of NCLT has now asked the resolution professional of Impex Metal to consider the bid of Sarda Energy, whose application was earlier rejected for being late in coming up with its resolution bid.
This could rescue part of the loans extended by banks like State Bank of India and Bank of Baroda to Impex Metal, which has over Rs 645 crore of unpaid loans.
"Although Corporate Insolvency Resolution Process period of 180 days is over on September 4, resolution professional submitted that recently they have received Expression of Interest from Sarda Energy and Minerals. Although CIRP process is already over, but considering the fact that if there is a chance of resolution of the corporate debtor, then this authority prefers for resolution rather than liquidation," judge M B Gosavi said in his ruling.
Terming it as an exceptional case, the judge gave two weeks' time to complete the entire process.
The resolution professional had earlier told the court that he would be filing an application for liquidation of Impex Metal as no acceptable resolution plan was received despite getting three resolution bids and a suitor in Sarda Energy and Minerals, a financially healthy mid sized entity with turnover base of Rs 1,575 crore earned in fiscal 2018.
Sarda Energy had made an offer after the period for entertaining applications for resolution proposals was over.
As its application was rejected initially, Sarda approached the NCLT arguing that its offer should be considered by the Committee of Creditors.
Among the creditor bankers, State Bank of India had given Rs 511 crore while Bank of Baroda extended Rs 100 crore to the S K Patni group of Kolkata which has several other listed steel companies under its fold like Rohit Ferro Tech, Ankit Metal & Power and Impex Ferro Tech, a leading player in manganese alloys.
Rs 1,575 crore – Turnover of Sarda Energy in fiscal 2018Rs 645 crore – Unpaid loans of Impex MetalRs 511 crore – Extended by State Bank of India to Impex Metal