NCLT admits SPNI’s insolvency petition against Ortel, appoints interim resolution professional

The National Company Law Tribunal (NCLT) has admitted Sony Pictures Networks India’s (SPNI) corporate insolvency petition against multi system operator (MSO) Ortel Communications. Further, the NLCT Delhi bench has appointed also appointed the Interim Resolution Professional (IRP).

SPNI had filed the petition against Ortel under Section 9 of the Insolvency and Bankruptcy Code, 2016 read with rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating corporate insolvency resolution process.

As per the Insolvency and Bankruptcy Code 2016, the IRP’s role is to collect all information relating to the assets, finances, and operations of the corporate debtor for determining the financial position of the corporate debtor.

It also has to receive and collate all the claims submitted by creditors to him pursuant to the public announcement made. The IRP’s responsibility also includes constituting a committee of creditors. Further, the IRP will have to monitor the assets of the corporate debtor and manage its operations until a resolution professional is appointed by the committee of creditors.

The IRP can also take control and custody of any asset over which the corporate debtor has ownership rights as recorded in the balance sheet of the corporate debtor, or with information utility or the depository of securities or any other registry that records the ownership of assets.

In view of insolvency proceedings, the power of the Board of Directors of the company stand suspended and be exercised by the interim resolution professional from the date of appointment of IRP as per Section 17 (b) of the Insolvency and Bankruptcy Code, 2016.

The Board of Directors had met on Wednesday to consider and approve the un-audited financial results of the Company along with Limited Review Report for the quarter and half year ended 30th September 2018 of FY 2018-19 pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

“It was informed to the Board and Board took note of the order passed by the National Company Law Tribunal (“NCLT”), Bench-III, New Delhi dated 27.11.2018, admitting the petition filed by M/s Sony Pictures Networks (India) Pvt. Ltd. against the Company under Section 9 of the Insolvency and Bankruptcy Code, 2016 read with rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 initiating Corporate Insolvency Resolution Process. The NCLT has also appointed the Interim Resolution Professional (“IRP”),” Ortel said in a filing to the BSE.

“Hence, the Board of Directors of the Company has decided not to consider and approve the un-audited financial results of the Company for the quarter and half year ended 3e September, 2018 of FY 2018-19 at this stage as the necessary action in this regard will be taken by the incoming interim resolution professional as appointed by NCLT vide order dated 27.11.2018. Further, it is hereby clarified that the un-audited financial results of the Company for the quarter and half year ended 30th September 2018 of FY 2018-19 are ready and available for consideration and approval as on today, November 28, 2018.”

In July, SPNI had filed insolvency petition against Ortel due to its inability to clear outstanding dues to the tune of Rs 12 crore.