The Chennai bench of the National Company Law Tribunal (NCLT) has granted an extension of the time frame for finding a revival plan for Thiru Arooran Sugars, which is under insolvency proceedings.
In June 2019, NCLT had ordered initiation of corporate insolvency proceedings against the company in a petition filed by the State Bank of India for alleged default of ₹149.36 crore. The resolution professional had sought for an extension of the corporate insolvency resolution process as per provisions of the Insolvency and Bankruptcy Code, which allows excluding certain periods for the purpose of counting the maximum period allowed for the insolvency process.
The time limit for identifying a prospective bidder could not be followed due to the size of the company and the huge volume of arrears of accounting work kept pending for almost six months, the resolution professional said. He also said given the vast extent of lands owned by Thiru Arooran Sugars spread across districts of Tamil Nadu, mapping of assets and their valuation required a longer time period.
Earlier, NCLT had extended the period of the insolvency process from 4.12.2019 to 03.03.2020.
Subsequently, expression of interest was published on 5.12.2019 and SNJ Distilleries had shown interest, the resolution professional said.
The Committee of Lenders had requested the resolution professional to seek extension of 60 days from 04.03.2020 to 02.05.2020, which would enable in completion of the process by issuance of fresh expression of interest and a call for fresh bids.
NCLT noted that if the 60 days are excluded from the insolvency process period, the total period would be 330 days which is the maximum allowed under the Insolvency and Bankruptcy Code.
It also granted further exclusion of time period arising due to the COVID-19 lockdown.
