Kallam Textiles CIRP: CoC meets, EoI deadline May 23

First CoC meeting formally kicks off creditor oversight

Kallam Textiles Ltd. has held its first Committee of Creditors (CoC) meeting, a key procedural step under the Corporate Insolvency Resolution Process (CIRP). The inaugural meeting was held on May 2, 2026, from 11:30 AM to 1:15 PM. The company has described this meeting as the point at which the insolvency resolution process formally began in operational terms, with creditors taking a central role.

The agenda focused on core CIRP building blocks rather than operational turnaround actions. Discussions covered creditor claims, appointment-related items for the resolution framework, and the process design for inviting resolution applicants. Minutes of the meeting were shared on May 4, 2026, giving stakeholders a formal record of deliberations.

What was discussed: claims, professionals, and the process plan

The first CoC meeting discussions centred on formalising claims and setting timelines to move the process forward. The CoC also deliberated on the appointment of the Resolution Professional (RP) and remuneration. In addition, the process for Expression of Interest (EoI) from potential resolution applicants was discussed.

The meeting also included decisions around appointing valuers and other essential professionals and service providers. These appointments are typically required to conduct valuations and support documentation that feeds into resolution-plan evaluation. The CoC also discussed expense approvals and professional fees, which directly influence the cost structure of the CIRP.

Finally, the CoC addressed the cadence of future meetings, an operational detail that matters because it determines how quickly claims, valuation, and plan evaluation can proceed.

NCLT admission and the CIRP commencement

Kallam Textiles’ CIRP follows an admission order by the National Company Law Tribunal (NCLT) Amaravati Bench. The petition was filed by Union Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, and was admitted for defaulting on financial obligations. The admitted default amount cited is INR 210.49 crore.

The NCLT order was delivered on April 6, 2026, initiating CIRP against the company. After the admission, the company’s management control shifted from the board to the Interim Resolution Professional (IRP), in line with the CIRP framework. A moratorium under Section 14 was also declared, restricting new suits and limiting actions such as asset transfers and enforcement of security interests.

Public announcement and claim submission mechanics

Following the NCLT order, Kallam Textiles published the mandatory Form A public announcement to notify creditors. The publication date cited is April 7, 2026, in Financial Express (English) and Andhra Prabha (regional language). The announcement included the timeline for creditors to submit claims and the identification of the IRP.

The claims submission deadline mentioned is April 20, 2026. Financial creditors were asked to submit claims electronically, while other creditors could submit in person, by post, or electronically. The IRP’s correspondence address was provided as B-725, Western Plaza, O.U. Colony, H.S. Darga, Hyderabad 500008, and the email shared was ktl.cirp@gmail.com.

IRP appointment and key compliance directives

Rajesh Chillale was appointed as the Interim Resolution Professional. The IRP registration number disclosed is IBBI/IPA-001/IP-P00699/2017-2018/11226. The NCLT also outlined procedural directives, including timelines for filings and administrative steps, as well as an ongoing requirement for monthly progress reports.

As part of CIRP funding for initial operational needs, Union Bank of India was directed to deposit INR 4.00 lakh with the IRP to meet operational expenses. The tribunal’s directions also included preparing audited financial statements as on the CIRP date.

Form G issued: Expression of Interest invited

Kallam Textiles has also published Form G inviting Expression of Interest for resolution plans under CIRP. The deadline for submission of EoI is May 23, 2026. The disclosure also states that the resolution process timeline extends until July 22, 2026, for submission of final resolution plans.

This step is central to the market-facing part of the insolvency process because it formally opens the door to interested resolution applicants. The EoI window, combined with the CoC’s work on claims and valuations, sets the stage for evaluating potential proposals.

Litigation and debt claims: multiple creditor pressures

Apart from the Union Bank petition, Kallam Textiles has faced other creditor-linked legal developments. The company disclosed a show cause notice from the Andhra Pradesh High Court in a debt recovery case filed by Indian Bank for INR 141.93 crore, along with an interim stay on proceedings at the Debt Recovery Tribunal.

Separately, a SARFAESI notice was cited as referencing a default figure of INR 185.36 crore, while the NCLT-admitted default in the Union Bank matter is INR 210.49 crore. The company has also disclosed receipt of NCLT notice regarding insolvency proceedings filed by Union Bank of India, and referenced the case identification as C.P. (IB)/3(AM)2026 in its communication.

Business context and prior restructuring attempts

Disclosures also point to earlier efforts to address financial stress before CIRP. Three different restructuring proposals and one investor proposal were submitted but rejected. The company was also exploring restructuring under the MSME scheme.

This backdrop helps explain why the CIRP steps are now becoming more structured and creditor-led. The formation of the CoC and appointment of professionals indicate that the process is moving from preliminary legal admission to execution of the statutory resolution roadmap.

Reported sales numbers cited in disclosures

Alongside the CIRP updates, the company reported sales figures for two financial years in the same set of disclosures. Kallam Textiles reported sales of INR 256.71 crore in FY 2024-25 and INR 235.40 crore in FY 2025-26.

These figures do not by themselves establish solvency or stress, but they provide context for stakeholders tracking operations during a period dominated by legal and restructuring developments.

Key dates and numbers at a glance

The CIRP disclosures include a clear sequence of statutory milestones, including the insolvency commencement date and the claims deadline. They also document the first CoC meeting date and the EoI deadline under Form G.

Why these steps matter for investors and the market

The first CoC meeting is a milestone because it formalises creditor control over key decisions, including costs, appointments, and the structure of the EoI and resolution-plan process. With the moratorium in place, the CIRP framework becomes the primary channel through which creditor claims and any restructuring outcomes are processed.

For investors tracking the listed entity, the disclosed milestones provide a timeline to monitor: claims verification, valuation appointment, the EoI stage, and the stated date for final plan submissions. The costs approved by the CoC, including professional fees and related expenses, will also shape the process economics.

A broader legal principle relevant to CIRP processes is that CoCs exercise commercial judgment over how they evaluate plans and settlement proposals, as reflected in tribunal observations in other matters. While that does not determine outcomes in any specific company, it underscores the centrality of CoC decision-making once CIRP begins.

Conclusion

Kallam Textiles’ CIRP has advanced from NCLT admission and public announcements to operational CoC functioning, with its first CoC meeting completed and minutes issued. The company has also invited EoIs through Form G, with May 23, 2026 as the deadline and July 22, 2026 cited for final resolution plan submissions. The next set of disclosures is likely to be driven by CoC decisions on claims, valuations, expenses, and the progression of the resolution-plan process within the stated CIRP timeline.