NCLT orders liquidation of Reid & Taylor

The National Company Law Tribunal’s (NCLT’s) Mumbai Bench on Tuesday ordered liquidation of the debt-ridden Reid & Taylor after the new investor, Indian Gas, failed to furnish documents that prove its net worth is over ~50 crore. However, the investor was ready to pay a non-refundable earnest deposit of ~2 crore as was asked by the tribunal to set in motion the process of providing a resolution plan for the company.

Although an investor from the US, named Phoenix GBL, offered to take over the firm, the Bench presided over by Bhaskara Pantula Mohan and V Nallasenapathy said they were not going to waste any more time as they had already entertained four–five bids, which failed to make progress. The tribunal has also asked the registrar and the RP to put in their best efforts to ensure that the company is sold to protect the interest of the workers.

Earlier, CFM Asset Reconstruction and SPGP Holdings had submitted their bids to take over the firm but they failed to either meet the requirements of the tribunal or did not show interest in providing a plan for Reid & Taylor. In December 2018, the CoC had moved for liquidation of the company but the tribunal stalled the process and gave extra 11 days for corporate insolvency resolution process after the 270-day time period for a resolution proposal of the firm expired.