One of the 1st Bankruptcy Cases Yet to See the Light : 17-10-2018

Rave Scan, one of the few early cases under the Insolvency and Bankruptcy Code is yet to see the light of the day in nearly two years since its admission.

The committee of creditors already approved a resolution plan with over three fourths majority.The National Company Law Tribunal’s principal bench has reserved the order on October 5.The company defaulted about Rs. 130 crore to a group of lenders led by Indian Overseas Bank. Bank of Baroda, Punjab National Bank, Hero Fincorp, Tata Capital are some of the other lenders. The dedicated bankruptcy court admitted the petition on January 25 in 2017. Ritu Rastogi was appointed as resolution professional.

New Delhibased Rave Scans was founded in 2002. The company’s line of business includes providing printing services. Rahul Jain, a business owner from Faridabad, actually bid for the assets.An application with 78% of voting in favour resolution plan was filed before the NCLT earlier in March. Rahul Jain handed over a demand draft representing 10% of the amount offered by him. He offered to buy the company, paying about Rs. 54 crore, implying about 60% haircuts or loan losses for lenders, said a person with the direct knowledge of the matter.Later, the court discussed the matter in a number of hearings. Finally, the court reserved the order on earlier in the month.This was the first case for NCLT Delhi’s principal bench under IBC. – www.economictimes.indiatimes.com [16-10-2018]

 

Source : Times of India

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