India's National Company Law Tribunal (NCLT) has ordered liquidation of Gujarat NRE Coke after the company's debt resolution plans failed.
The Kolkata bench of the NCLT, the designated court for bankruptcy cases, on Thursday passed the order, which was filed with the stock exchanges on Friday.
The NCLT-appointed liquidator will first try to dispose off the company as a "going concern" in a bid to save jobs of the 1 178 employees, according to the order. If the plan does not succeed within three months, then other modes of asset sales will be explored, the NCLT said.
Under India's bankruptcy rules, a company goes into liquidation if no other debt resolution plan works out even after 270 days of the insolvency case getting admitted.