Fashion and accessories brand Provogue (India) is all set to be liquidated after a two-judge division bench of the National Company Law Tribunal (NCLT) ordered the same owing to the refusal of lenders to accept the offers put forth for the company.
The final written order will be available on the NCLT website within few days, but the news for liquidation has been pronounced as an oral order by justices B.P. Mohan and V. Nallasenapathy.
The company has been going through insolvency proceedings since 25 July 2018 in the NCLT, which has finally resulted in this decision for liquidation.
“The only outside offer that was presented was not acceptable to the committee of creditors (CoC). There was one from the promoters as well, which was also rejected and that has meant that the company is now headed for liquidation,”said Nishit Dhruva, Managing Partner, MDP & Partners, the firm that represented the CoC.
The lead lender to the company was Andhra Bank, which headed the CoC and has lent a total sum of Rs. 81 crore to the retailer.
Other banks in the consortium were Bank of India (BoI), Corporation Bank, Punjab National Bank (PNB), Central Bank of India and IndusInd Bank.