Vikram Kothari’s company, Rotomac, immersed in a debt of Rs 3695 crore. After closure of all the solutions, banks have taken tough steps and refused to give 90 days of extra time to the company. Along with this decision, the route for Rotomac Global Pvt Ltd and Rottomac Export auction has been cleared with no resolution in the sight.
The resolution professional in Rotomac companies, Anil goel confirmed the unusual step by the bankers. “Lenders did not approve any extension,” Goel told this to ET. The initial 180-day deadline will be expired on 19 March. As per the provisions of the Insolvency and Bankruptcy Code, a 90-day extension is typically given to help support a revival plan after the initial deadline ends.
A meeting between the committee of creditors was made on Friday to vote for an extension. According to a statement by an executive with the knowledge of the matter, they were almost unanimous in their decision.
Loan money given by individual banks to the troubled Rotomac group were unavailable for comment immediately. The Central Bureau of Investigation (CBI) had arrested Rotomac owner Vikram Kothari and his son Rahul Kothari in the alleged loan default case a few weeks ago. The CBI officials said that Vikram Kothari and his son, who were called to police station, were arrested after they failed to cooperate with the investigation.
