Calcutta: Ailing cable manufacturer Nicco Corporation has been put under the liquidation process by the National Company Law Tribunal (NCLT), drawing the curtains down on the 75-year-old company after lenders rejected a revival plan proposed by the management.

The Calcutta bench of the NCLT, comprising Justices Vijay Pratap Singh and K.R. Jinan, pronounced the order on Tuesday under the new Insolvency and Bankruptcy Code (IBC) of 2016.

Under the IBC, a company is given a maximum of 270 days to come up with a revival plan. The committee of creditors (CoC) rejected Nicco's revival plan in their meeting on October 6.

Nicco Group chairman Rajiv Kaul expressed disappointment but reserved his remark on the next course of action pending Tuesday's order.

"I'm sad that despite the concerted efforts by the company and the resolution professional, the banks did not approve the restructuring plan which entailed no haircut on the side of capital or interest repayment. In fact, the consultant appointed by the CoC had met all the guidelines stipulated by the SBI," Kaul said.

The two plants, employing around 400 workers at Shyamnagar in Bengal and Baripada in Odisha, are under suspension of work from the middle of 2015 because of a cash crunch. The court has named a liquidator to handle the process which may take between six months and a year. The process will involve public announcement, claim submission and the disposal of assets.

The SBI and Allahabad Bank were the leading creditors to Nicco. The principal and interest outstanding were around Rs 200 crore and Rs 120 core, respectively.

Initially, the management sought a moratorium on repayment, additional loan as working capital and sale of non-core assets worth around Rs 100 crore.

When the lenders did not agree to provide relief on the moratorium and working capital, the management made a revised proposal to keep part of the proceeds from the sale of assets for working capital. The lenders' committee rejected that too.

"After the CoC rejects the revival plan and the 270-day period is over, the company goes to liquidation, which has happened in Nicco's case," Kunal Banerjee, the resolution professional appointed by the NCLT, said.

Nicco was the first stressed company to go through IBC led process but in this case, the management filed before NCLT, instead of lenders which has been the case for many other debt laden companies.