The National Company Law Appellate Tribunal (NCLAT) has allowed GRK Reddy, the promoter of Marg Ltd, a Chennai-based real estate and infrastructure company, to submit a proposal for clearing the dues to financial and operational creditors.
If Reddy makes a proposal acceptable to lenders, he could regain control of the company which was dragged to the National Company Law Tribunal (NCLT) in May this year by ICICI Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC).
The NCLAT order came on a plea filed by Reddy against the NCLT decision to start insolvency process against Marg for defaulting on Rs. 71.69-crore payment to ICICI Bank.
During a hearing on August 7, the counsel for Reddy said the promoter has settled the matter with the ICICI Bank. The counsel for ICICI Bank submitted that a settlement had been reached, but the amount is yet to be paid. NCLAT then ordered Reddy to ‘settle the matter with all the creditors’ and may derive the benefit of Section 12A of the IBC by proposing the terms of settlement.
“If any such proposal is submitted, the ‘Interim Resolution Professional’ will call for a meeting of the ‘Committee of Creditors’ and place the matter before it for consideration in accordance with Section 12A. If the CoC approves the proposal with 90 per centvoting shares, it will be open to ICICI Bank to move an application…for withdrawal of application under Section 7,” NCLAT order said The NCLAT has granted twoweeks to Reddy to submit a proposal.
via NCLAT gives Marg’s promoter two weeks to clear dues, exit IBC – STATES – The Hindu BusinessLine
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