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The Kolkata bench of the National Company Law Tribunal (NCLT) has allowed the withdrawal of the petition for the insolvency proceedings against McNally Bharat Engineering Company (MBE). McNally Bharat Engineering Company is the engineering entity for the Williamson Magor Group, which is promoted by the Khaitan family. The financially stressed Williamson Group has been undergoing a restructuring process.
The petition for the insolvency of McNally Bharat Engineering Company was filed by its financial creditor - Trinetra Electronics for payment default two days ago and the Tribunal allowed for the withdrawal of the same even before the petition was admitted by the adjudicating authority. The counsel appearing for Trinetra Electronics said that the Tribunal disposed off the case and the insolvency petition has been withdrawn by us as a result of the out of Tribunal settlement between the parties.
Trinetra had filed an insolvency petition against McNally for a default of about Rs. 3.36 Crore on September 30, 2014. It has been said that McNally Bharat is planning to sign an Inter- Creditor Agreement with the lenders of the company. However, only few of the lenders have agreed to sign the agreement.
Apart from Trinetra, there were certain other financial creditors, who had filed insolvency petitions against McNally Bharat Engineering Company including Tata Capital Financial Services, and some other operational creditors. The Kolkata bench of National Company Law Tribunal is currently hearing these petitions.
An official of McNally Company said that the investors are showing interest in the company and an Expression of Interest (EOI) has been already signed with a Hyderabad-based investor. A number of investors have signed the Expression of Interest for investing around Rs. 150 crore in the equity of the company. It should be noted that McNally is current in a debt of Rs. 3,000 crore out of which non-fund based debt is Rs. 1,000 crore and Rs. 2,000 crore is fund-based.
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