Mutual Fund

Lenders start to lose trust in Liberty House’s bid to buy stressed firms under IBC

Casting doubts over the ability of Liberty House to meet its commitments under resolution plans for Adhunik Metaliks and Amtek Auto, the Committee of Creditors led by ICICI Bank is said to have rejected the resolution plan submitted by the London-based Group for debt-laden shipbuilder ABG Shipyard Ltd. The committee of creditors is said to have rejected the resolution plan submitted by Liberty House for ABG Shipyard through an electronic voting on December 18 and recommended liquidation of the shipyard, a person briefed on the voting said, asking not to be named. Liberty Group is looking to appeal the CoC decision in the National Company Law Tribunal (NCLT), arguing that its bid was more than the liquidation value of Rs 2,200 crore set by the lenders, the person said. Liberty has sought more time to make upfront payments it had committed under the resolution plans for Adhunik Metaliks and Amtek Auto. Lenders don’t trust Liberty anymore after it failed to honour the commitments made under resolution plans for Adhunik Metaliks and Amtek Auto, the person said. The CoC’s decision to hold an electronic voting on the resolution plan submitted by Liberty and reject it comes ahead of a hearing of the National Company Law Tribunal (NCLT) on January 19 on the case.

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