OBC approaches NCLT to initiate insolvency proceedings against Simbhaoli Sugars

Oriental Bank of Commerce has approached the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against debt-ridden Simbhaoli Sugars.

The sugar company informed the OBC has filed an application with the NCLT, Allahabad seeking initiation of the corporate insolvency resolution process under section 7 of the Insolvency and Bankruptcy Code, 2016, it said in a regulatory filing.

SBI, PNB, Bank of Baroda, ICICI Bank, Exim Bank are among 12 other bankers of the company.

The company had posted a net loss of Rs 180.39 crore during the 2017-18 fiscal. During the April-June quarter of the current fiscal, the net loss was Rs 1.44 crore.

Simbhaoli Sugars Limited, one of the largest sugar mills in the country, has sugar units in Uttar Pradesh and Gujarat.

The company's shares closed at Rs 9.44 apiece, up 2.28 per cent on the BSE today.

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