Relief for 2 power projects; Madras HC stays insolvency proceedings


Relief for 2 power projects; Madras HC stays insolvency proceedings

Madras High Court has granted interim reprieve to two private power companies by staying insolvency proceedings against their stressed assets.

Several other firms, meanwhile, are likely to approach the Supreme Court on Tuesday, seeking more time to resolve their bad loans and save themselves from insolvency as a Reserve Bank of India circular has mandated.

These companies include GMR Energy, Essar Power and RattanIndia Power, which withdrew their applications from the Allahabad High Court where they had sought extension of the RBI-mandated deadline to refer their projects to the National Company Law tribunal (NCLT), sources said.

The deadline for lenders to refer unresolved stressed projects to the NCLT, as per the RBI circular, ends Tuesday. The Madras High Court on Monday granted a stay on referring an IL&FS project and another of RKM Powergen to the NCLT after they pleaded for an extension of the deadline. Read More

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