Shriram EPC goes into liquidisation
One of the country’s major construction players Shriram EPC, goes into insolvency after the company failed to prevent Asset Care & Reconstruction Enterprise, an asset reconstruction company, from initiating the insolvency process.
After IVRCL, Shriram EPC is the second large construction company in the country that has gone into insolvency mode. Shriram had earlier successfully prevented the insolvency process initiated last year because of its operational creditors Rio Glass Solar.
The plea of Asset Care Company (which had earlier bought over the debt of DBS Bank) has been accepted by The National Company Law Tribunal (NCLT) bench of Chennai. DBS Bank had extended long-term debt to Shriram which turned into a non performing asset in 2014.
After Shriram EPC was dragged to NCLT, it argued that the assignment agreement between DBS and Asset Care was in derogation of CDR Scheme.