This was after RBI refused to a proposal from the banks to relax the rules in this regard for those companies which are close to a resolution.
Videocon Industries, Jaiprakash Associates and Jayaswal Neco Industries are now among those to face NCLT proceedings for resolution of their loans. These three were recommended by banks for resolution outside the NCLT process but RBI, as mentioned, negatived this.
Under the Insolvency and Bankruptcy Code, a defaulting companys board of directors are suspended and NCLT appoints an insolvency resolution professional to manage its day to day affairs. The company will then be sold to the highest bidder who takes over the largest portion …
Read the full article at: http://www.business-standard.com/article/companies/another-defaulters-list-sent-to-nclt-117122900903_1.html
