The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted Rajahmundry Godavari Bridge, a subsidiary of Gammon Infrastructure, for Corporate Insolvency Resolution Process (CIRP). Vishal Ghisulal Jain has been appointed as the resolution professional for the process.
The company (RGBL) had entered into a concessions agreement with Andhra Pradesh Road Development Corporation (APRDC) for design, construction, finance, operations and maintenance of a 4.15-kilometre long four-lane bridge across the river Godavari.
The project also included 10.34 kilometre of approach roads on either side of the bridge. The bridge connects Kovvur and Rajahmundry in Andhra Pradesh. It has been operational since November 2015. In February 2018, RGBL served a termination notice to APRDC “on account of several breaches of the said concession agreement”.
Following the termination, dues aggregating to over `1,120 crore became payable to the company’s lenders. Following this, in July 2018, Union Bank of India had initiated CIRP against the company. Following this, RGBL has requested the state-owned bank to explore other options instead.
Parent company Gammon Infrastructure is the infrastructure project development company promoted by Gammon India. Union Bank of India in 2018 moved the NCLT against Gammon India, as well.