The Chennai Bench of the National Company Law Tribunal (NCLT) has ordered liquidation of Rathna Stores Pvt Ltd. According to sources, the firm owed ₹80 crore to banks and ₹1 crore to operational creditors and had a tax liability of ₹25 crore. Its major lenders include ICICI Bank and UCO Bank. The insolvency proceedings were filed by the ICICI Bank. The order comes after a committee of lenders failed to find bidders for the revival of the company as part of the resolution process.
Under the insolvency proceedings, a maximum 270-day time frame is given to come up with a resolution plan for the company, failing which the firm goes into liquidation. NCLT has appointed V. Venkatasivakumar as the liquidator, who has called for submission of claims from various stakeholders on or before October 11. In 1957, P.S. Sivaperumal and his brothers started a shop in Ranganathan street and expanded it into Pondy Bazaar. After the split in 1971, Sivaperumal started the firm Rathna Stores in 1984 before splitting it among his sons in 2013. The South Usman Road and Trichy units came under the firm.
*_ _ _ _ _ _ _ _ _ _ _ _ _