Lenders contemplate action against the London-headquartered Liberty House for failing to meet commitments made under a resolution plan that it has submitted to lenders. Options before the lenders range from ignoring the company's future bids to taking action under Section 74 of the Insolvency and Bankruptcy Code (IBC), which provides for punishment for contravention of moratorium or the resolution plan.
The resolution plan submitted by the UK-based company, headed by Sanjeev Gupta, had been approved for several companies including Amtek Auto, Castex Technologies, Adhunik Metaliks, and Zion Steel. The company has however, failed to make a £40 million payment to lenders due to its acquisition of Adhunik Metaliks. It has also missed a deadline on making payments for Amtek Auto. The company was to pay £481 million to Amtek Auto's financial creditors by end August, but has sought more time to make payments although the process does not provide for such extensions.
CEO of a public sector bank said, “We will talk to them and see if they can bring in the money. If they do not, there are only two options - go for a fresh resolution process, or liquidation.