Visa Steel exits insolvency process after NCLT approval

The NCLT Cuttack bench, in an order dated September 26, 2025, approved the withdrawal of the insolvency application against Visa Steel Limited, releasing the company from the corporate insolvency resolution process (CIRP). This decision follows an application filed by interim resolution professional Ajay Kumar Agarwal, seeking to withdraw the petition filed by Punjab National Bank (now assigned to ACRE).

The CIRP, initiated on November 28, 2022, faced a stay order from the Hon'ble High Court of Orissa on December 21, 2022. This prevented the first committee of creditors (CoC) meeting from being convened. Despite this, Asset Care & Reconstruction Enterprise Ltd. (ACRE), through assignments, acquired 95.94% of the admitted financial debt, effectively holding a supermajority voting share in the CoC.

The NCLT noted that the settlement reached between the corporate debtor and ACRE, along with the NCLAT's directive on November 13, 2024, to seek withdrawal, justified the decision. The moratorium order passed under Section 14 of the IBC has ceased, and the resolution professional has been directed to hand over company records and assets to the management. The registrar of companies, Cuttack, is also instructed to update the corporate debtor's status as no longer being under CIRP.