Burn Standard files resolution plan before NCLT

KOLKATA: Burn Standard, the insolvent wagon maker originated from Kolkata, has filed a resolution plan before the National Company Law Tribunal Monday.

The insolvency resolution plan includes a Rs 417 crore financial package to pay back creditors and suppliers. The package also includes voluntary retirement for 500 employees.

NCLT's Kolkata bench heard the plan and reserved its order on the case. Sources said the order will be passed after Holi.


The Ministry of Railways, which undertakes the company, has budgeted Rs 417 crore, people familiar with the matter told ET.

The proposal is however yet to get approval from the cabinet committee on economic affairs. But that should not stop NCLT to pass its judgement as the Railway Board has already made a provision for Rs 417 crore package.

The company has filed its resolution plan as a running concern.

It reported net sales of Rs 197 crore for the first nine months of the fiscal and made 680 wagons and repaired 3,700 till December.

The company has two engineering units at Howrah and Burnpur and a foundry operation.