The bankruptcy court has instructed the chief executive of listed infrastructure company Sadbhav Engineering to address the payment issues with its creditors in consultation with the board. The Ahmedabad bench of the National Company Law Tribunal also directed IDBI Bank to convene a meeting of all consortium lenders to tackle the company's debt restructuring. This move is expected to set a precedent regarding the tribunal's authority to direct consortium lenders to convene such meetings.
The directive followed the CEO's appearance before the tribunal, where he stated that the company had proposed a restructuring package to all financial creditors and was seeking a resolution. "The CEO is directed to resolve the issues of payment in consultation with the board, given the multiple applications from various operational creditors before this tribunal," the bench said in its order dated June 19. (Source: ET)
