Hero Electric, India’s first electric two-wheeler brand, is headed for liquidation following an order from the National Company Law Tribunal (NCLT) after efforts to revive the company through the insolvency resolution process failed to produce an approved plan. The NCLT noted that no resolution proposal received the required support from the Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code (IBC).
The insolvency proceedings against Hero Electric began on December 20, 2024, following a petition filed by Metro Tyres Ltd under the IBC. A Committee of Creditors (CoC), comprising financial institutions like Bank of Baroda, South Indian Bank, IDFC First Bank and Kotak Mahindra Bank, among others.
The CoC held multiple meetings and evaluated proposals from companies interested in taking over the business. Expressions of interest were invited from potential investors and several parties reportedly showed interest in acquiring the company. Eventually, two resolution plans were formally submitted for consideration. However, when put to vote, neither of these two resolution plans managed to secure the minimum approval required under the IBC of 66 per cent.
The creditors remained divided over the future course of action, and the CoC failed to reach a consensus within the insolvency resolution timeline. The tribunal has said that continuing the process would not serve any purpose and ordered liquidation of the company under Section 33 (1) (a) of the Insolvency and Bankruptcy Code.
Hero Electric is India’s first electric two-wheeler brand when the company first launched electric scooters with lead acid batteries in 2007. Although the brand has the “Hero” name, it’s an offshoot of the Munjal family which owns Hero MotoCorp. While Hero MotoCorp’s EV vertical Vida is slowly and steadily growing, India’s first electric scooter brand from the same family is heading for liquidation.
from carandbike - News https://ift.tt/ebArG8L
via IFTTT
No comments:
Post a Comment