Maharashtra Seamless’s plan was was rejected for suggesting less value than liquidation value of corporate debtor: NCLT order
Liberty House of UK, owned by maverick NRI Sanjeev Gupta has emerged as the lone bidder for Adhunik Metaliks, a maker of auto grade steel as the bid for another applicant, Maharashtra Seamless has been rejected for being below liquidation value.
While Liberty House's eligibility has recently been questioned by NCLT's Chandigarh's bench in the insolvency case of much published Amtek Auto, it has received a second change to prove that it is not a defaulter and keep itself in the race for Adhunik Metaliks and also its group outfit Zion Steel at the Kolkata bench of NCLT. The Chandigarh bench is yet to rule on Liberty's eligibility criteria.
Liberty House, Maharashtra Seamless and the union of workers' of Adhunik had placed their respective bids and at the meeting of Committee of Creditors, Liberty House was selected at the highest bidder and negotiations initiated.
In the meantime, questions were raised about the eligibility of Liberty House in the light of the Amtek Auto case for alleged non-repayment of loan taken from Exim Bank which is yet to be decided upon by the Chandigarh bench.
But with NCLT's Kolkata bench giving additional 20 days over the 270 days' deadline to consider Liberty's bid and with Maharashtra Seamless's bid getting rejected, chances are now bright for Liberty House to grab Adhunik Metaliks as well as it's group outfit Zion Steel.
"The plan of Maharashtra Seamless was considered by the CoC, but it was rejected for suggesting less value than the liquidation value of corporate debtor," the NCLT order allowing the 20 days' deadline disclosed on Monday said.
Adhunik, which is into alloy and special carbon steel in Odisha that goes to auto components, would be a right fit for Liberty, which is eyeing Amtek that has a major presence in auto components, industry experts believe.
"Period of 20 days stands excluded from the 270 days' period and the resolution professional is allowed to consider the plans before him within 20 days from the date of this order and submit them for approval of this bench," the order said.
Maharashtra Seamless, however, is still in the race for Zion Steel and the court has ordered bankers to approve either of the two by July.
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