Bhubaneswar: Over 600 workers and employees working in Nicco Corproration’s plants in Odisha and West Bengal would lose their job as the Kolkata bench of National Company Law Tribunal (NCLT) has put cable manufacturer company under liquidation process to meet the demands of the creditors.
Nicco has borrowed around Rs 186 crore from several banks led by State Bank of India.
The company has been put under liquidation under Section 14 of the Insolvency and Bankruptcy Code (IBC). Nicco was the first company to be referred to NCLT after the BIFR was scrapped.
According to Kunal Banerjee, the Resolution Professional (RP) for Nicco Corporation liquidation could not be avoided as the stipulated 270 days time had passed and the lenders had rejected the revival package submitted by the company management. The company had asked for some interest rate concessions on the loans taken from the banks and no discount on the principal amount.
The Kolkata headquartered Nicco has cable manufacturing units in Odisha’s Baripada and Shyamnagar in West Bengal. The company, which has been one of pioneers in the country in cable manufacturing, produces a wide range of power and telecom cables. It has also business interests in project implementation on turn key basis and setting up amusement parks. Nicco had joined with the Bhubaneswar Development Authority to set up an amusement park, Nicco Park, in the heart of the Bhubaneswar city.