UBI seeks better settlement plan, 'definite upfront payment' of dues

New Delhi: Debt-ridden Supertech Ltd, which is facing insolvency proceedings, should come up with a settlement plan that entails "definite upfront payment" of dues, according to one of its lender Union Bank of India.

The bank on whose application the National Company Law Tribunal (NCLT) decided to initiate insolvency resolution proceedings against Supertech Ltd has made the submissions before appellate tribunal NCLAT.

After the NCLT order for insolvency proceedings, the promoters of Supertech Ltd had challenged the ruling before the National Company Law Appellate Tribunal (NCLAT). On March 25, the Delhi bench of the NCLT had directed to initiate insolvency proceedings against Supertech Ltd over a petition filed by the Union Bank of India for non-payment of dues worth around Rs 432 crore.

The order has been challenged by R K Arora, director of the suspended board of Supertech Ltd, which is one of the firms of Supertech group.

In a hearing held on Tuesday, the NCLAT extended its stay over the formation of the committee of creditors (CoC) under the insolvency proceedings till May 2, after Arora's counsel sought one more chance to give a better proposal to the bank.

Union Bank of India informed that it had received a proposal from Supertech Ltd promoters, but the same was rejected.

"... Counsel for the Bank Shri Alok Kumar submits that if some proposal is to be given, there should be definite upfront payment and the payment should not be for such a long duration as has been suggested earlier by the Appellant (Arora)," the NCLAT order said.