India’s National Company Law Tribunal directed creditors and stakeholders to proceed with a resolution plan for a major infrastructure company undergoing insolvency proceedings.
The NCLT order moves the distressed firm closer to exit from corporate insolvency resolution process mandated under the Insolvency and Bankruptcy Code. Infrastructure companies with heavy debt loads have featured prominently in India’s insolvency docket since the code took effect.
Resolution plans typically involve haircuts for lenders, equity transfers to new owners, or operational restructuring to restore viability. Creditors’ committees vote on competing proposals before tribunal approval binds all parties.
The tribunal’s direction signals that a approved plan has met statutory requirements for feasibility and compliance. Successful resolution preserves jobs and project assets that might otherwise face liquidation, while failed timelines could trigger forced sale of the company’s units under IBC provisions.
The insolvency case was initiated by financial creditors after the infrastructure company defaulted on debt servicing obligations. NCLT approval of a resolution plan halts liquidation proceedings that would have sold assets piecemeal to recover lender exposure.
Creditors under the Insolvency and Bankruptcy Code voted on competing resolution plans before the NCLT issued its direction. Infrastructure firms with heavy leverage have been frequent entrants into corporate insolvency proceedings since the code’s adoption.
Created by Ayen Stabel.
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Sources:
https://www.sci.gov.in/latest-orders/