The National Company Law Tribunal’s Kolkata bench has admitted the insolvency plea against power transmission company EMC Ltd, which has defaulted on payments to the tune of Rs 6,500 crore to banks and other creditors, two people familiar with the matter said.
NCLT took action following a petition filed by operational creditors to the company and appointed an interim resolution professional, prompting the financial creditors led by State Bank of India to swing into action.
Banks were initially not keen in going for insolvency proceedings, perhaps because the speed of resolution under the bankruptcy law has slowed.
“Banks were not initially keen to go for insolvency proceedings but later, they found potential in the company’s resolution exercise. Read More
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