BTL-EPC pays first tranche of Rs 65 cr to take over McNally Bharat Engineering
Times of India | 17 December 2024
12 Kolkata: Shrachi Group's construction arm BTL-EPC deposited the first tranche of Rs 65 crore as stipulated by the National Company Law Tribunal (NCLT), Kolkata bench, in its Dec 3 order for taking over McNally Bharat Engineering. NCLT had approved the extension of the deadline for the implementation of the resolution plan of BTL-EPC for McNally Bharat, which used to be a Williamson Magor Group firm. The cash component of the resolution plan was Rs 155 crore, while the total resolution plan was Rs 441 crore, including bank guarantees.
McNally Bharat went into corporate insolvency on April 29, 2022. BTL-EPC's resolution plan was approved by the committee of creditors in July 2023 and by the NCLT in Dec of the same year. The other bidders for the firm were Naveen Jindal Group firm Nalwa Steel and Power, and Amit Metaliks. There was also a Swiss auction for McNally in the final round.
BTL-EPC Ltd later filed an application seeking clarifications regarding additional imposition and/or levy of taxes consequent upon amendments to the Income Tax Act. An application was filed by the financial creditor, Bank of India, contending that it terminated the resolution plan in question and forfeited the amounts deposited by the resolution applicant. However, BTL-EPC challenged the termination of the resolution plan and invocation of the bank guarantee. The resolution applicant also agreed to implement the plan unconditionally. According to the plan now, BTL-EPC would pay the second tranche by Feb 28 and the third tranche by March 26.
The lenders of McNally include BOI, Axis Bank, SBI, PNB, IDBI Bank, UCO Bank, Union Bank of India and ICICI Bank, along with others. The total admitted claim for the company was Rs 5,015 crore. Kolkata-based investment bank Indcap Advisors was BTL-EPC's adviser.