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NCLT Sends Bira, Creditors To Mediation Over Insolvency
Bira’s parent company, B9 Beverages, is facing insolvency proceedings.
This means it is having difficulty dealing with money it owes.
The National Company Law Tribunal sent the company and its creditors to mediation.
Mediation is a meeting where people try to find an agreement with help from a neutral process.
The company said financiers might provide money to help it recover.
Some creditors were not convinced that the proposed settlement was sufficient.
Unity Small Finance Bank said an offer of ₹3 crore was far below the more than ₹19.04 crore it was owed.
The Tribunal said the parties would not receive another delay if they cannot reach an agreement.
The National Company Law Tribunal sent B9 Beverages and its creditors to mediation over pending insolvency proceedings.
The order was issued on September 15 by an NCLT bench in New Delhi.
The company said financiers were willing to provide funds and help revive the business.
Unity Small Finance Bank questioned a ₹3 crore offer against dues exceeding ₹19.04 crore.
The Tribunal warned that no further indulgence would be granted if mediation fails.
- Who
- B9 Beverages Limited, its creditors, Unity Small Finance Bank Limited, and Axis Bank were involved in the proceedings.
- What
- The National Company Law Tribunal directed the company and creditors to pursue mediation to explore a settlement of insolvency proceedings.
- Where
- The proceedings were heard by the NCLT in New Delhi.
- When
- The order was passed on September 15; Unity Small Finance Bank referred to a letter dated September 10.
- Why
- The direction followed claims that financiers were willing to infuse funds and revive the company, although some creditors questioned the settlement proposal.
Company and Revival Proposal
Creditor Concerns
Prospects for revival
Company and Revival Proposal
B9 Beverages said settlement discussions were under way and that financiers were willing to infuse funds to revive the company.
Creditor Concerns
Some creditors expressed reservations about the proposed settlement and its adequacy.
Value of the settlement offer
Company and Revival Proposal
The company sought to pursue settlement discussions through mediation.
Creditor Concerns
Unity Small Finance Bank argued that a ₹3 crore offer against more than ₹19.04 crore in dues was not a serious or plausible settlement offer; Axis Bank was still considering its offer.
Key facts
- Company
- B9 Beverages Limited, which operates the Bira business
- Tribunal
- National Company Law Tribunal, New Delhi
- Order date
- September 15
- Main insolvency petition
- A Section 7 plea filed by Unity Small Finance Bank Limited
- Unity offer cited
- ₹3 crore against dues exceeding ₹19.04 crore
- Other creditor
- Axis Bank said it had received and was considering a settlement offer
- Tribunal warning
- No further indulgence if the directed settlement meeting does not produce an agreement
Quotes
National Company Law Tribunal
The tribunal hearing B9 Beverages’ insolvency proceedings in New Delhi
“no further indulgence would be shown in the matter.”
CNBC TV 18
Sources
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