Simbhaoli Sugars Faces Insolvency: NCLT Orders Proceedings

New Delhi, Jul 12 (PTI) The National Company Law Tribunal (NCLT) has ordered initiation of insolvency resolution proceedings against Simbhaoli Sugars Ltd on a petition filed nearly six years ago.

The plea was filed in September 2018 by erstwhile Oriental Bank of Commerce which has been merged with state-owned Punjab National Bank (PNB) now.

The lender had sought initiation of Corporate Insolvency Resolution Process (CIRP) against the company under section 7 of the Insolvency and Bankruptcy Code.

"... petition has been admitted by the NCLT, Allahabad Bench vide order dated July 11, 2024," Simbhaoli Sugars said in a filing to stock exchanges on Friday.

NCLT has appointed Anurag Goel as interim resolution professional. With the NCLT ruling, the company's board stands suspended and it would be run by Goel.

According to the application filed before the NCLT, the default amount stood at over Rs 130 crore as of November 22, 2017.

A leading sugar company, Simbhaoli sells sugar under the brand 'Trust' and has factories in Uttar Pradesh.

Shares of the company fell 2.46 per cent to Rs 32.58 apiece on the BSE.