NCLT allows ICICI Bank’s plea for insolvency resolution process against Unimark Remedies – Business Line–26.04.2018

The Mumbai Bench of the National Company Law Tribunal has admitted ICICI Bank’s plea to initiate corporate insolvency resolution process against Unimark Remedies Ltd to recover an outstanding loan of about Rs 149 crore.

Corporate insolvency resolution process (CIRP) is the process of resolution of insolvency of a corporate debtor (other than a financial service provider) under the Insolvency and Bankruptcy Code (IBC). Once admitted, CIRP will commence on the date of admission (insolvency commencement date) and has to be completed within 180 days from this date.

ICICI Bank has sought CIRP against Unimark Remedies Ltd (corporate debtor) on the ground that it had committed default from December 31, 2015 onwards in repayment of various facilities granted to it to the extent of about Rs 149 crore. This is as per the proof of debt and default submitted by the bank to NCLT.

The facilities sanctioned to the Mumbai-headquartered healthcare company by the bank amounted to about Rs 132 crore (principal sanctioned amount) and the outstanding as at January-end 2018 amounted to about Rs 149 crore.

NCLT has appointed Amit Gupta (Amit H Gupta & Co Chartered Accountants) as interim resolution professional (IRP) to carry out the process as mentioned in the IBC. The estimated date of closure of CIRP is September-end 2018.

Under IBC, the IRP will manage the operations of the corporate debtor as a going concern. He will take control of assets of the corporate debtor.

These assets do not include assets owned by a third party but in possession of the corporate debtor held under trust or under contractual arrangements, including bailment, assets of any Indian or foreign subsidiary of the corporate debtor, and assets as may be notified by the Central Government.

Unimark Remedies is a vertically integrated healthcare company with a business portfolio that includes products ranging from diagnostics, devices, finished formulations, cosmeceuticals, animal healthcare products and active pharmaceutical ingredients. It has manufacturing plants at Ahmedabad, Vapi (both in Gujarat), and Khopoli (Maharashtra).

ICICI Bank had reportedly tried to sell its loan exposure to asset reconstruction companies but could not make any headway.

via NCLT allows ICICI Bank’s plea for insolvency resolution process against Unimark Remedies – Business Line

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