NCLT Admits BGR Energy Systems For Insolvency Resolution

India’s National Company Law Tribunal (NCLT) admitted BGR Energy Systems Ltd. into corporate insolvency resolution process (CIRP) following a petition by its operational creditor.

The Amaravti bench of the NCLT passed the CIRP order against the Chennai-based company on 3 April, BGR Energy said in a stock exchange announcement. The development came after RDC Concrete India Private Ltd. sought action against the company, claiming a default of around 7.20 crore rupees ($863,806).

The NCLT bench, comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri, also appointed P.V.B. Sudhakararao as an interim resolution professional for BGR Energy.

The B.G. Raghupathy family-promoted company carries business in two segments, namely supply of systems & equipment and turnkey engineering project contracting, according to its website.

Meanwhile, Sudhakararao asked BGR Energy’s creditors to submit their claim details with proof by 17 April, according to a public announcement.

The e-mail to be used for correspondence with the IRP is cirpbgr2024@gmail.com, he added.

BGR Energy’s CIRP is likely to be completed by 29 September, according to the announcement.

BGR ENERGY ORIGIN

The company was originally incorporated in 1985 as a joint venture between Germany’s GEA Energietechnik GmbH and B.G. Raghupathy to manufacture and sell on-line condenser tube cleaning systems, debris filters and rubber cleaning balls used in thermal and nuclear power plants, according to its website.

In 1993, Raghupathy and members of his family became the sole shareholders of the company and began to expand the range of product and services range in the power and oil & gas industries.

The company’s name was changed from GEA Energy System (India) Ltd. to its current identity on 28 June 2007.

BGR Energy operates in five complementary segments, namely power projects business, oil and gas equipment business, air fin coolers business, environmental engineering business and electrical projects business.

Note: $1 = 83.3521 Indian rupees

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