Lenders face 95% haircut as Tecpro Systems' debt mounts to Rs 75 billion

Tecpro promoters face action under Section 66 of IBC for siphoning funds

The resolution of Rs 75-billion debt of Tecpro Systems, a material handling company, submitted to the National Company Law Tribunal (NCLT) early this month will test the insolvency process if lenders have to take a huge haircut because promoters have walked away with funds prior to bankruptcy filing. 

On May 3, the resolution professional (RP) initiated action under Section 66 and section 67 of the Insolvency and Bankruptcy Code (IBC) at the NCLT against Tecpro’s erstwhile promoters for siphoning off funds from the company. 

Under Section 66 and 67 of the IBC, a promoter or a director can be held