In 2018, ICICI Bank initiated insolvency proceedings against Punj Lloyd after the company defaulted on a ₹854 crore loan. On Monday, the National Company Law Tribunal (NCLT) provided the liquidator additional time until July 23 to complete the company’s liquidation.
The NCLT specified that, if necessary, the liquidator could submit a fresh application after July 23 to request further extension for the liquidation process. During the proceedings, the liquidator’s counsel informed the tribunal about potential challenges in selling Punj Lloyd as a going concern due to discrepancies in price expectations with the shareholders’ consultative committee. Consequently, the liquidator expressed intent to explore selling Punj Lloyd in parts if selling the company as a whole becomes unfeasible.
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In an attempt to sell the company as a going concern, Punj Lloyd had organized an e-auction on July 10, with a reserve price of ₹1,061 crore, as approved by the shareholders’ consultative committee. However, the auction failed to attract any bidders.
Previously, on May 27, 2022, the NCLT had ordered the liquidation of Punj Lloyd after a revival plan presented by a consortium of Prudent Asset Reconstruction Company and Payard Investments was rejected by the lenders.
