Under the lens
Hirakud Industrial Works insolvency: How Hindalco and Hirakud Workers' Union unveiled a ‘staged’ act
![Hirakud Industrial Works insolvency: How Hindalco and Hirakud Workers' Union unveiled a ‘staged’ act](https://img.etimg.com/thumb/msid-97991284,width-1015,height-761,imgsize-13410,resizemode-8/prime/corporate-governance/hirakud-industrial-works-insolvency-how-hindalco-and-hirakud-workers-union-unveiled-a-staged-act.jpg)
![Hirakud Industrial Works insolvency: How Hindalco and Hirakud Workers' Union unveiled a ‘staged’ act](https://img.etimg.com/thumb/msid-97991284,width-1015,height-761,imgsize-13410,resizemode-8/prime/corporate-governance/hirakud-industrial-works-insolvency-how-hindalco-and-hirakud-workers-union-unveiled-a-staged-act.jpg)
Synopsis
NCLAT has quashed the NCLT’s order approving resolution of Hirakud Industrial Works after it observed that financial creditors, promoters, and successful resolution applicant acted in concert. But how was it all ‘staged’? What role did Hindalco and the Hirakud Workers Union play in it?
Odisha-based Hirakud Industrial Works was admitted to insolvency court on June 4, 2019 by a financial creditor, Nandakini Contractors Private Limited for a default of an unusually small amount of INR24 lakh. After being under insolvency court for over two years, the proceedings against Hirakud Industrial Works ended after the resolution plan submitted by Regus Impex Private Limited was approved by the committee of creditors (CoC) with an 87.4%
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