RBI’s second list of defaulters: Bankruptcy process filed against SEL Manufacturing

SEL Manufacturing Co. Ltd, a textiles maker, has become the first company in the second list of corporate defaulters identified by the Reserve Bank of India (RBI) against which bankruptcy proceedings have been filed, according to two people aware of the matter.

State Bank of India, the lead bank, referred the case to Chandigarh National Company Law Tribunal (NCLT) last week, the people said on condition of anonymity. The bank named Grant Thornton as the interim resolution professional and Shardul Amarchand Mangaldas & Co as their legal counsel.

An email sent to SEL Manufacturing did not elicit any response. Spokespeople for Grant Thornton and Shardul Amarchand Mangaldas declined to comment.

“It is a policy of the bank not to comment upon individual accounts and its treatment,” said a spokesperson for SBI.

At the end of March 2017, SEL Manufacturing had a debt of ₹4,275 crore.

It is one of the 29 companies identified by the RBI to be resolved through any of its schemes before December 13, failing which cases should be filed against these firms under IBC at the NCLT before December 31.

In September, foreign lenders including Standard Chartered bank and DBS Bank Ltd initiated bankruptcy proceedings against edible oil maker Ruchi Soya Industries Ltd, another defaulter in the list.

“Expect more cases from the second list. It is easily digestible given the quantum of exposure is going to be less for different stakeholders,” said Sitesh Mukherjee, partner at Trilegal.

MUMBAI: