Rolta Creditors To Vote On Extending Insolvency Resolution Period

Rolta India Ltd.’s creditors will vote on extending the company’s corporate insolvency resolution process (CIRP) period by up to 60 days.

The bankrupt software services provider’s creditors, who met on 25 September, decided to extend the CIRP period beyond 270 days through electronic voting, Rolta’s Resolution Professional Mamta Binani said in a stock exchange announcement.

The matter related to extension of CIRP will be put up for e-voting in due course and necessary application will be filed with the adjudicating authority after the voting outcome.

Binani said during the meeting, the creditors also deliberated on the legal and commercial viability of the resolution plan submitted by the unidentified resolution applicant. She didn’t provide further details.

Rolta’s creditors previously gave the company’s sole suitor to submit its revised resolution plan by 20 September.

Reportedly, iron and steel maker Rashmi Metaliks Ltd. had submitted a resolution plan for Rolta, while the government-owned National Asset Reconstruction Company Ltd. (NARCL) has offered 600 crore rupees ($72 million) to creditors to acquire the bankrupt firm’s debt.

The Mumbai-based IT firm is undergoing the CIRP after the National Company Law Tribunal admitted a petition filed by its financial creditor Union Bank of India on 19 January, alleging a default of 1,413.47 crore rupees.

The company’s financial creditors include Bank of Baroda, Bank of India and Canara Bank.

Note: $1 = 83.1089 Indian rupees

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