NCLT pronounce liquidation of Gujarat NRE Coke under sec 14 of Insolvency and Bankruptcy Code

The company owed lenders around Rs 4,600 crore, and reported a loss of Rs 676 crore on a revenue of Rs 541 crore in 2016-17.

KOLKATA: Liquidation order of city-based Gujarat NRE Coke was pronounced by the Kolkata bench of National Company Law Tribunal (NCLT) under section 14 of Insolvency and Bankruptcy Code (IBC).

The NCLT order said "The liquidator shall try to dispose off the corporate debtor company as a going concern after publication of notice in newspaper with the reserve price which shall be equal to the total debt amount including interest and maximum period applicable for trying the sale of the corporate debtor as a going concern will be three months from the date of the order." The liquidation order was issueD last night by the bench.

Sumit Binani, the resolution professional (RP) of the company, is appointed as the liquidator.

Last April, the tribunal had admitted an application by the metallurgical coke producer under the IBC for initiating the insolvency resolution process.

The company owed lenders around Rs 4,600 crore, and reported a loss of Rs 676 crore on a revenue of Rs 541 crore in 2016-17.

Gujarat NRE Coke, with close to 1100 employees and workers on its rolls, would be the second Kolkata based firm after Nicco Corporation to go for liquidation under IBC.

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