Bombay Rayon Fashion heads for liquidation

Mumbai: The Mumbai bankruptcy court ordered the liquidation of Bombay Rayon Fashion after the secured creditors of the listed textile firm did not receive any viable revival plan for the company. The company has admitted liabilities of Rs 7,358 crore, including Rs 6,690 crore in financial dues.

The National Company Law Tribunal (NCLT), while allowing an application to admit the liquidation company, also appointed lenders and resolution professional recommended Truvisory Insolvency Professionals (IPE) as its liquidator.

"The bench is of the considered view that the corporate debtor (Bombay Rayon) be liquidated," said the bench headed by judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh in its order of November 9. "The liquidator will have all powers of the board of directors, Key Managerial Personnel (KMP) and the partners of the debtor, as the case may be," said the bench further.