National Company Law Appellate Tribunal (NCLAT) has approved Maruti Ferrous proposal to procure debt-laden company, Sunil Ispat and Power, as reported by the Indian daily news, The Economic Times.
The steel product manufacturing firm had put forward a modified scheme to add operational creditors. According to the plan, the lenders of the debt-laden company will receive half of the principal amount that they had lent earlier.
Sunil Ispat and Power owes a total sum of INR 36 Crore to the lenders--Syndicate Bank, Bank of Baroda, Hudco, Asset Reconstruction Company and Central Bank of India, to name a few.
A few months ago, National Company Law Tribunal (NCLT) had also approved Maruti Ferrous proposal.
By receiving approval of NCLAT, the factory owned by Sunil Ispat and Power will reopen again after seven years.
Nearly 200 people can be employed in Raigarh factory that is owned by Sunil Ispat and Power. Kolkata-based Arun Gupta was the resolution professional in the insolvency case, the news report said.
If only the principal amount loaned is considered, the lenders will have to forgo half of the amount, Gupta told the daily news.