Maharashtra Seamless again shows interest to buy Adhunik Metaliks

As Liberty House is dragging its feet in paying for Adhunik Metaliks, Maharashtra Seamless, the second-highest bidder, has written to the Committee of Creditors (CoC), renewing its interest in the company.

The counsel representing the CoC for Adhunik read out a letter from Maharashtra Seamless, which said that it had cash reserves of Rs 500 crore and was a zero-debt firm. Maharashtra Seamless’s written offer for Adhunik was more than Rs 400 crore. Liberty’s offer for Adhunik was Rs 410 crore. 

The CoC counsel prayed before the National Company Law Tribunal (NCLT) Kolkata Bench that the resolution professional be allowed to continue and a second chance be given so that the process could be revived. As of now, the company was under the management of Grant Thornton, which was the managing agency. The monitoring committee was defunct, argued the CoC counsel, as it had representatives from Liberty House as well. The CoC counsel said the monitoring committee was for implementing a particular resolution plan.

While there was no process of reviving the CIRP (corporate insolvency resolution process) after the 270-day period, which had lapsed in the case of Adhunik Metaliks, according to the RFRP (request for resolution proposal) document, lenders could invoke the default clause that would allow it to invite fresh bids. The CoC counsel argued that liquidation was the ultimate situation but the theme of IBC was resolution. 

Liberty had earlier said that it was ready with funds for Adhunik. Its main contention was claims filed by MSTC to the tune of Rs 100 crore. That case is being heard in the National Company Law Appellate Tribunal (NCLAT). 

According to Liberty, the outcome of the MSTC would have a material impact on the case being heard in the NCLT.

The CoC counsel, while praying for an interim order, said the order could read that it would be subject to the outcome of the case being heard.

The long-stop date for payment by Liberty was January 15, 2019. However, the CoC counsel representing the CoC said Liberty had not paid.