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Valuation of Acil assets: NCLT order worries lenders

Economic Times  

A two-judge bench of the National Company Law Tribunal (NCLT) in Delhi has sought revaluation of assets in a more than three-year old case involving auto components maker Acil Ltd despite an overwhelming number of creditors approving it, raising concerns of judicial “overreach” in cases that are being settled close to the liquidation value. Creditors had voted in favour of Ramkrishna Forgings taking over Acil at INR 129.75 crore, translating into a 94% haircut to the INR 1,762 crore of dues from the company. However, the NCLT bench has expressed doubts over the INR 130.50-crore fair value ascribed to assets and asked for a revaluation. Bankers fear such judicial overreaches could become the norm and destroy a resolution process that already has been crippled by delays.