Assam Company resolution process likely to be difficult; RP seeks extension

The total debt of the company stands at Rs 14.1 bn

Anticipating a difficult resolution for the Assam Company India Ltd, which is facing insolvency proceedings in the Guwahati bench of NCLT, the company’s resolution professional, T Kannan has asked for an extension till July 23 from the tribunal to complete the process.

The problem is on account of the debt structure of the company. Sources suggest that the maximum debt has been taken by the company for the oil business whose assets currently have negligible liquidation value. On the other hand, its only assets are the 14 tea gardens which can fetch a liquidation value of Rs 2.8-3.5 billion but