TH: Insolvency process initiated against energy company – Bhatia Coke & Energy Limited

26 May 2019: The State Bank of India has dragged energy firm Bhatia Coke and Energy Limited into insolvency process for non-payment of dues of about ₹125.9 crore to a consortium of banks.

In September 2009, the company availed itself credit from State Bank of India and the erstwhile State Bank of Mysore.

Further, it availed itself a joint working loan of ₹97 crore (₹51 crore from State Bank of India, ₹31 crore from State Bank of Mysore and ₹15 crore from Punjab National Bank. Bhatia Coke is engaged in trading of coal and coke oven and coal washery manufacturing.

Its account became a non-performing asset (NPA) from November 2017. The lenders had rejected the company’s proposal for a one-time settlement.

The Chennai Bench of National Company Law Tribunal admitted the SBI’s petition for the insolvency proceedings against the company. Under the insolvency and bankruptcy code, a maximum of 270 days is given for finding a suitable resolution plan for the revival of the company. Otherwise, it goes under liquidation.

The NCLT appointed Motappa Thimmaraya Swamy as interim resolution professional and directed him to take over the company’s management immediately.

The Hindu Reported

Categories: General News, India Bankruptcy

Tags: , , , , ,

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