New Delhi: Edible oil maker Ruchi Soya Industries Ltd on Friday said its creditors DBS Bank and Standard Chartered Bank have filed applications with the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the company.
In two separate BSE filings, Ruchi Soya said that it has received copies of the applications filed by DBS Bank and Standard Chartered to begin corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code against it.
Ruchi Soya’s primary lines of business include selling packaged edible oils and soyabean chunks, oilseed extraction, edible oil refining, and wind power generation.
Ruchi Soya’s total borrowings stood at Rs12,232.22 crore for FY16-17, almost 12 times the company’s equity, as per the latest annual report.
The company earlier this month said its board has set up a committee to explore business restructuring options, including creating subsidiaries for individual businesses within the company, and separating businesses into individual entities.
Ruchi Soya is part of a list of 28 defaulters that the Reserve Bank of India (RBI) sent to banks, asking them to conclude a debt resolution process by 13 December this year, Mint reported. RBI has asked banks to finish proceedings by the end of the year, failing which these accounts will be referred to the NCLT for proceedings under IBC.
At 2.48pm, Ruchi Soya shares were trading 0.46% down at Rs21.85, while benchmark Sensex index rose 77 points, or 0.24%, to 32,319.