Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) has been directed by the National Company Law Tribunal (NCLT) to provide re-connection of electricity for a limited period of three weeks, to help the revival of Supreme Coated Board Mills Pvt Ltd, which is under insolvency proceedings.
The Sivakasi-based company manufactures white-coated boards, used in the matchstick, firework, notebook, and packaging industries.
The committee of lenders of the company felt that its resolution value can be maximised only when it is operational and the resolution professional sought for restoration of the electricity connection.
The company had arrears of ₹3.01 crore to Tangedco and the connection was cut off before the commencement of insolvency proceedings.
The NCLT, Chennai noted that the request of the committee of lenders seems to be fair to a limited extent that since the machinery had been kept in idle condition for more than 8 to 9 months, and this might be a detrimental factor to maximize the value of the company's assets.
It also said that the re-connection as well as consumption charges for the three weeks have to be paid, and a representative of Tangedco shall be permitted to be at the site during operation of the machinery.
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