Banks to weigh NARCL’s offer against developer’s offer
Banks plan to consider National Asset Reconstruction Company (NARCL) resolution offer for Chennai-based engineering firm Consolidated Construction Consortium (CCCL) against a settlement offer submitted by the troubled company’s promoters, according to three people in the know.
Meanwhile, CCCL’s resolution professional, which has already been admitted for insolvency resolution, on Monday solicited expressions of interest (EOI) for the account. Financial creditors of CCCL have filed claims worth Rs 2,693 crore, of which claims worth Rs 2,428 crore were admitted as of March 21, 2022.
State Bank of India, ICICI Bank, IDBI Bank, Bank of Baroda and Tata Capital Financial Services are secured creditors of CCCL, while Edelweiss Asset Reconstruction Company (ARC) is an unsecured creditor among others.
Emails to major lender SBI and NARCL managing director Natarajan Sundar went unanswered until press time.
“The NARCL offer came, but the banks want to take a call after they get the developer’s offer. The developer had made an initial offer but now they can revise it,” said a senior banker familiar with the developments.
The CCCL website names R Sarabeswar, S Sivaramakrishnan and VG Janarthanam as promoters. The promoter’s offer will be in the form of an application under Section 12A of the Insolvency and Bankruptcy Code (IBC).
Section 12A provides that the contracting authority may authorize the withdrawal of a claim admitted under Article 7 of the Code upon a request made by the claimant with the approval of 90% of the votes of the creditors’ committee (CoC ).
In an order dated July 14, the Chennai Bench of the National Company Law Tribunal (NCLT) granted a motion to extend CCCL’s Corporate Insolvency Resolution Process (CIRP) by 60 days until July 28.
“In the meantime, the suspended Board has proposed a settlement under Section 12A which is pending review by the CoC and the CoC needs additional time to come to a conclusion,” the statement said. court order.
CCCL offers construction, engineering, procurement and project management services with offices in Chennai, Bangalore, Hyderabad and Delhi. In FY21, the company recorded a net loss of Rs 106.4 crore on net revenue of Rs 201.22 crore. The year’s annual report attributed the loss to high input costs, erratic supply of raw materials, unfavorable market conditions and high financial costs.