Thee National Company Law Tribunal (NCLT) has directed to liquidate debt-ridden dairy firm Kwality Ltd after the company failed to finalise any bidder within the specified time-frame.
The NCLT had directed to initiate insolvency proceedings against Kwality Ltd on December 11, 2018 over the plea filed by the financial creditors Punjab National Bank and KKR India Financial Services.
AA two-member bench of the Delhi-based NCLT observed that despite extension in the insolvency timeline, the lenders of the Kwality failed to finalise any potential buyer for the company. The Committee of Creditors (CoC) had received only one resolution plan for the company from a consortium of Haldiram Snacks and Pioneer Securities, but the bid could not get approved with the required majority of 66 per cent votes of lenders.
Followingg this, its resolution professional (RP) Shailendra Ajmera, who is part of consultancy firm E&Y, had moved an application to initiate the liquidation process for the company as mandated under the Insolvency & Bankruptcy Code (IBC).
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