Essel Homes, Primcomm face insolvency proceedings

NEW DELHI: The National Company Law Tribunal (NCLT) has ordered the initiation of insolvency resolution proceedings against Essel Homes and Primcomm Media Distribution Ventures after Gnex Realtech defaulted on repayment of loans of nearly Rs 261 crore to Indiabulls Housing Finance.
Essel Homes and Primcomm were the co-borrowers, and NCLT has appointed Ravi Prakash Ganti as the interim resolution professional (IRP).
Indiabulls had sanctioned a loan of Rs 190 crore to Gnex in June 2020. To raise the debt, the borrower had pledged the shares of Essel Homes and Primcomm. Owing to default in repayment of debt, the loan was classified as an NPA at the end of Sept 2021.
Essel Homes and Primcomm had contested the IBC action, arguing that the loan had been given to Gnex. They also argued that there was some delay in repaying the first two installments, when it came to the interest component. They further questioned the maintainability of the petition, arguing that there was some "uncertainty in the alleged claims".
The NCLT bench, however, dismissed the plea and ordered the initiation of insolvency action.
With the appointment of an IRP, a committee of creditors will be formed, which will then invite claims from other creditors and will seek a resolution applicant or a new owner. Once an IRP is appointed the existing promoters are ousted from the company.