IVRCL heads for liquidation as CoC dumps sole resolution plan
22 November 2018
The Hyderabad-based construction company IVRCL Ltd is now headed for liquidation, after the committee of creditors (CoC) rejected the lone resolution proposal.
The resolution process, initiated by the main lender SBI, in the National Company Law Tribunal, Hyderabad, is now past the 90-day resolution period prescribed under the Insolvency and Bankruptcy Code, 2016.
With the CoC, which assessed the proposal, rejecting the debt resolution plan, the resolution professional has been asked to file a petition for liquidation, a process that is initiated once the resolution process fails.
Since there was no valid resolution plan applicable for IVRCL, and also considering the changes in the documents of Expression of Interest and the bid process, the CoC decided to reject the plan. There was no majority support for the resolution plan.
The CoC has requested the RP to file an application with the NCLT to end the CIRP period for liquidation of IVRCL on a going concern basis.
IVRCL reported standalone net sales of Rs234.03 crore in September 2018 down 42.1 per cent from Rs404.22 crore in September 2017.
Quarterly net loss stood at Rs443.04 crore in September 2018, down 58.1 per cent from Rs280.23 crore in September 2017.
EBITDA stood negative at Rs7.70 crore in September 2018, up 89.75 per cent from Rs75.09 crore in September 2017.