Spectra Industries Limited , a company currently undergoing corporate insolvency resolution process, is now headed for liquidation following a crucial decision by its Committee of Creditors (CoC).

Liquidation Approval

The Committee of Creditors, in a meeting held on September 15, 2025, approved the liquidation of Spectra Industries Limited under section 33 of the Insolvency and Bankruptcy Code, 2016. This decision marks a significant turning point for the company, which has been navigating through financial difficulties.

Meeting Details

The CoC meeting, which took place via video conference, commenced at 4:00 PM and concluded at 4:30 PM. This brief yet consequential meeting sealed the fate of the company, pushing it towards the liquidation process.

Insolvency Timeline

Spectra Industries has been under the corporate insolvency resolution process (CIRP) for some time. The company's financial struggles led to the appointment of a Resolution Professional through an order by the National Company Law Tribunal (NCLT), Mumbai bench, dated June 16, 2023.

Previous Developments

Prior to this decision, the company had been exploring various options to resolve its financial situation:

• On September 3, 2025, the CoC had considered resolution plans received from potential applicants.
• The committee had also approved an extension of the CIRP and discussed the associated costs.
• Earlier, on July 4, 2025, the CoC had approved a further extension of the CIRP, indicating ongoing efforts to find a resolution.

Implications

The decision to liquidate suggests that despite these efforts, a viable resolution plan could not be agreed upon or implemented. This move will likely have significant implications for the company's stakeholders, including creditors, employees, and shareholders.

Next Steps

With the liquidation approved, the next phase will involve the actual process of liquidating the company's assets to settle its debts and liabilities. Stakeholders will be watching closely as this process unfolds.

The liquidation of Spectra Industries underscores the challenges faced by companies in financial distress and the mechanisms in place under the Insolvency and Bankruptcy Code to address such situations.

Spectra Industries Limited , a company currently undergoing Corporate Insolvency Resolution Process (CIRP), has seen further developments in its resolution process. The Committee of Creditors (CoC) held a significant meeting on September 3 to address key matters related to the company's insolvency resolution.

Key Developments

• Resolution Plans Review: The CoC reviewed resolution plans submitted by resolution applicants.
• Extension Approval: The committee approved a further extension of the Corporate Insolvency Resolution Process for Spectra Industries Limited.
• Cost Approvals: The CoC approved the insolvency resolution process costs and legal costs for filing the extension application before the Adjudicating Authority.
• Meeting Details: The meeting lasted for 20 minutes, from 4:00 PM to 4:20 PM.

Background

Spectra Industries Limited has been under the Corporate Insolvency Resolution Process following an order from the National Company Law Tribunal (NCLT), Mumbai bench, dated June 16, 2023. This process is governed by the Insolvency and Bankruptcy Code, 2016, which aims to resolve insolvency in a time-bound manner.

Recent CoC Activities

The latest meeting builds upon previous CoC activities:

• On June 26, the CoC deliberated on crucial matters including:
  • Feasibility and viability of resolution plans
  • Evaluation matrix for resolution plans
  • Potential sale of the company as a going concern
  • Ratification of costs related to due diligence and legal vetting of resolution plans
  • Consideration of submitted resolution plans
  • Appointment of a liquidator in case of liquidation

Implications

The approval for further extension of the CIRP and the review of resolution plans indicate that the resolution process for Spectra Industries is progressing, albeit requiring additional time. This extension provides the Resolution Professional and the CoC with more time to evaluate and implement potential resolution strategies, aiming to maximize value for all stakeholders involved.

The approval of insolvency resolution process costs and legal costs for the extension application suggests that the CoC is committed to seeing the process through and ensuring all necessary steps are taken in compliance with legal requirements.

Stakeholders, including shareholders and creditors of Spectra Industries Limited, will be keenly watching the developments in this extended period, as the outcome of the CIRP will significantly impact the company's future and their interests.

As the insolvency resolution process continues, further updates are expected regarding the company's path forward, potential resolution plans, or any other significant decisions made by the Committee of Creditors.