Transstroy In­dia heads for in­sol­vency res­o­lu­tion

The Hindu Business Line - - NEWS - V RISHI KU­MAR

The Na­tional Com­pany Law Tri­bunal, Hy­der­abad Bench, has ad­mit­ted a pe­ti­tion for in­sol­vency against Transstroy (In­dia) Ltd ini­ti­ated by Ca­nara Bank.

While declar­ing a mora­to­rium, with ef­fect from Oc­to­ber 10, till the com­ple­tion of the Cor­po­rate In­sol­vency Res­o­lu­tion Process or un­til the Bench ap­proves the Res­o­lu­tion Plan, the Ju­di­cial Mem­ber Ratakonda Mu­rali ap­pointed Govin­dra­julu Venkata Narasimha Rao as in­terim res­o­lu­tion pro­fes­sional to carry out the func­tions un­der the In­sol­vency and Bank­ruptcy Code.

The pe­ti­tioner bank stated that it had sanc­tioned ₹125 crore un­der fund based work­ing cap­i­tal lim­its and ₹600 crore un­der non-fund based work­ing cap­i­tal lim­its, which in­clude bank guar­an­tees of ₹500 crore and let­ter of credit of ₹100 crore, ag­gre­gat­ing ₹725 crore.

It con­tended that Transstroy de­faulted its pay­ments to the bank and that the pe­ti­tion was filed seek­ing di­rec­tion of the Tri­bunal to ini­ti­ate Cor­po­rate In­sol­vency Res­o­lu­tion Process (CIRP) against Transstoy and find a res­o­lu­tion plan.

The com­pany is en­gaged in ex­e­cu­tion of ir­ri­ga­tion and road projects and com­pleted sev­eral BOT road projects and the fifth one was un­der con­struc­tion. The com­pany is also ex­e­cut­ing a con­tract of ₹5,788 crore in the mega Indira Sa­gar Polavaram Pro­ject in Andhra Pradesh through a joint ven­ture firm.

The pe­ti­tioner bank also stated that two of the prop­er­ties of Transstroy in Hy­der­abad have been ac­quired by Spe­cial Deputy Col­lec­tor through land ac­qui­si­tion for metro projects and a com­pen­sa­tion of ₹150 crore was pend­ing.

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