Relief to listed pharmaceutical company billcareNational Company Law Appellate Tribunal (NCLAT)NCLAT) has stayed the bankruptcy court’s order accepting the company under the corporate insolvency resolution process (CIRP, The company was admitted under the resolution process on a petition filed by asset reconstruction company (India) after defaulting on its dues by more than ₹235 crore.

“The Appellant (Billcare) submits that before the Adjudicating Authority (NCLAT) the Appellant has filed an application for extension of time up to 30th November to make the payment under OTS (One-Time Settlement), to which the Respondents (ARC) also agreed,” a division bench headed by Justice Ashok Bhushan said in its order dated November 15.

The appellate tribunal will next hear the matter on December 7. Prior to the order of the Appellate Tribunal, the Mumbai bench had National Company Law Tribunal ,NCLT) admitted the company under CIRP on November 11, and appointed Ashutosh Agarwal as the interim resolution professional (IRP) of the company.

The lender argued in its petition in the NCLT that basically, South Indian Bank In October 2013, Bilare had sanctioned a standby letter of credit (SBLC) facility of over $21 million (about ₹180 crore). As per the agreed terms, the SBLC facility was valid for five years with one-time repayment. end of five years. The company failed to clear its dues on November 10, 2018 and later, in 2019, the lender approached the Mumbai NCLT against Billcare. In September 2019, the parties agreed to settle the matter amicably.

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