<p>The Telegraph reported that the dual intent of India’s insolvency law to revive a sick company and maximise the value of an assetmay collide once again when the National Company Law Appellate Tribunal hears the case of Kolkata based Gontermann-Peipers (India) this week. Even after two rounds of bidding, the jury is still out if turnaround and the protection of jobs can take precedence over the realisation of the creditors and now a third round of auction has been prescribed.</p><p>India’s largest steel roll manufacturer, closed since 2017 and now in liquidation, has drawn interest both from the realm of real estate and manufacturing. In the fray for the prized asset, which also possesses 25.53 acres of prime land near Joka on Diamond Harbour Road, is JSW Steel. Also in contention is Snaefell Heights LLP, a firm linked to city-based realtor Srijan Group, which had bid the highest in Round 2. </p><p>Seeing the interest from JSW Steel and a few others, the Calcutta bench of the National Company Law Tribunal ordered a fresh round of auction for Gontermann-Peipers as a going concern in March. Snaefill has challenged the re-auction before the NCLAT which is going to hear the case. The realtor had put in a bid of INR 88 crore in the e-auction in September. JSW filed a petition before the NCLT, Calcutta, seeking a re-auction and promising to pay INR 90 crore for GPI. This is the second attempt of the steel giant, which had bid for the company during the corporate insolvency resolution process. However, the INR 68-crore offer from JSW was rebuffed by the committee of creditors over a disagreement on a legal issue. The company, under the ownership of Mr Pramod and M Vinod Mittal of Ispat Group, was sent to liquidation as a going concern. Snaefell Heights argued before the NCLAT that pre-bid eligibility criteria for a liquidation sale is not mandatory unlike CIRP.</p><p>Gontermann-Peipers’s present capacity stands at 12,000 tonne compared with India’s requirement of 84,000 tonne. However, there is ample scope of expansion in the present site. Out of the total land available with Gontermann, only 2.76 acre is factory land while 22.14 acre continues to be sali and barga land, which can be used for real estate. The area has now become a prime location for mid market housing.</p>
<p>The Telegraph reported that the dual intent of India’s insolvency law to revive a sick company and maximise the value of an assetmay collide once again when the National Company Law Appellate Tribunal hears the case of Kolkata based Gontermann-Peipers (India) this week. Even after two rounds of bidding, the jury is still out if turnaround and the protection of jobs can take precedence over the realisation of the creditors and now a third round of auction has been prescribed.</p><p>India’s largest steel roll manufacturer, closed since 2017 and now in liquidation, has drawn interest both from the realm of real estate and manufacturing. In the fray for the prized asset, which also possesses 25.53 acres of prime land near Joka on Diamond Harbour Road, is JSW Steel. Also in contention is Snaefell Heights LLP, a firm linked to city-based realtor Srijan Group, which had bid the highest in Round 2. </p><p>Seeing the interest from JSW Steel and a few others, the Calcutta bench of the National Company Law Tribunal ordered a fresh round of auction for Gontermann-Peipers as a going concern in March. Snaefill has challenged the re-auction before the NCLAT which is going to hear the case. The realtor had put in a bid of INR 88 crore in the e-auction in September. JSW filed a petition before the NCLT, Calcutta, seeking a re-auction and promising to pay INR 90 crore for GPI. This is the second attempt of the steel giant, which had bid for the company during the corporate insolvency resolution process. However, the INR 68-crore offer from JSW was rebuffed by the committee of creditors over a disagreement on a legal issue. The company, under the ownership of Mr Pramod and M Vinod Mittal of Ispat Group, was sent to liquidation as a going concern. Snaefell Heights argued before the NCLAT that pre-bid eligibility criteria for a liquidation sale is not mandatory unlike CIRP.</p><p>Gontermann-Peipers’s present capacity stands at 12,000 tonne compared with India’s requirement of 84,000 tonne. However, there is ample scope of expansion in the present site. Out of the total land available with Gontermann, only 2.76 acre is factory land while 22.14 acre continues to be sali and barga land, which can be used for real estate. The area has now become a prime location for mid market housing.</p>
