Adhunik Metaliks to plead insolvency

Kolkata-based Adhunik Metaliks, a maker of steel with ~6,000 crore of loan dues, is planning to file for insolvency, say those involved in the process.

A source said, “They want to restructure the company by filing for insolvency.” The company did not respond to Business Standard’s query in this regard.

Listed on the BSE exchange, it made a loss of ~173 crore for the quarter ended March 31. The share was down four per cent on Friday, to ~5.95.

A number of steel and power companies are being taken to the National Company Law Tribunal under the Insolvency and Bankruptcy Code.

Under the latter, a debtor company may also file for insolvency in an attempt to restructure its business.

The company had already initiated corporate debt restructuring.

It then came under the Reserve Bank’s order for banks to take over equity stake in companies which weren’t repaying, under the Strategic Debt Restructuring scheme. ‘

Even under this, the lenders did not initiate acquisition, the company’s auditors stated in the latest results.

“The company had faced many challenges in its operating sector due to falling prices of finished products, spurred by significant imports from countries like China, Korea, etc,” went its annual report.

Lenders to the company include Allahabad Bank, Bank of Baroda, Bank of Maharashtra, Corporation Bank, HDFC Bank, ICICI Bank, Indian Overseas Bank, Punjab National Bank and State Bank of India.

A number of steel and power companies are being taken to the National Company Law Tribunal under the Insolvency and Bankruptcy Code