Bil Energy enters liquidation as it fails to get any revival plan
Bil Energy System Ltd for liquidation as no viable revival plan was offered to the lenders of the BSE-listed firm that has failed to pay dues of about Rs 167 crore.
As part of the process, the National Company Law Tribunal (NCLT) has also appointed G Madhusudhan Rao as the company’s liquidator, said people aware of the development.
Last year in December, the Mumbai-based power sector equipment manufacturer was admitted under the corporate insolvency resolution process (CIRP) in an application filed by the State Bank of India after it defaulting on its dues of about Rs 167 crore.
When the resolution professional of the company invited bidders, the company received interest from three potential applicants, including Aruna Kailash Shah, Mayank Goyal and Subhalakshmi Investment Advisory.
However, the lenders felt that without having clarity on and taking possession of the assets of the bankrupt company, the proposed bidders would not be able to submit an effective resolution plan and, accordingly, on June 3, 2023, the lenders with 100% voting rights decided to initiate the liquidation process of Bil Energy System.
The lenders noted that the company was not a going concern for three years before being admitted to CIRP, and that most of its assets are untraceable.
“The absence of physical assets, machinery transfers without lender consent before the CIRP, the status of going concern at the insolvency commencement date, and the need for clear demarcation and physical possession of factory land are some of the pressing issues detrimental to getting any value,” said Kalpit Khandelwal, partner at the law firm Aekom Legal.
“Navigating this intricate landscape, the path to recovery for any lender is poised to be a journey
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