NCLT admits petitions for insolvency resolution against Ruchi Soya
, ET Bureau|
Dec 08, 2017, 07.49 PM IST
The Mumbai bench of NCLT on Friday admitted edible oil maker Ruchi Soya for insolvency resolution process under IBC. A detailed order is expected by Monday.
The company was referred to the tribunal by Standard Chartered Bank as well as DBS Bank, individually and both petitions have been admitted by the court. It owed more than Rs 5,300 crore to banks at the end of 2016-17.
The company is also a part of the list of companies that were given a deadline of December 13 by the RBI to come up with a resolution plan using any of the central bank's schemes like SDR, S4A etc, failing which they will be taken to the NCLT by lenders till December 31. For this, a Joint Lenders Forum (JLF) constituted of more than 17 banks is already at work, trying to go through a suitable resolution plan that could save the company from going into the courts for insolvency resolution.
However, the two banks, not being part of the JLF had moved the NCLT for CIRP against Ruchi Soya in September, individually. Ruchi Soya owed around Rs 33 crore to Standard Chartered as on February 1, while a sum of around Rs 150 crore was owed to DBS Bank in March.
Ruchi Soya had earlier this month announced a 51% equity stake sale to private equity major Devonshire Capital for an amount of Rs 4000 crore, that the company's CMD Dinesh Shahra said , would be used to "resolve outstanding issues with banks, financial institutions and operational creditors". Fate of the deal will depend on the final order that is awaited.
The company that deals majorly in agro commodities and commodities sector has been affected in the last few years due to drought in the country as well as volatility in global commodity prices, which, coupled with low demand from export markets as well as some operational difficulties, has led to frequent losses. The company reported loss of Rs 2883 crore in the quarter ending September. Its losses for the June quarter stood at Rs 286 crore.
However, the company in a press release today announced that it eyes improved capacity utilisation after the mid-term review of the Export Policy increased export incentives for agriculture and related products. It added saying that the 2% additional incentive under the MIES scheme for soyameal will help the company increase capacity utilisation as well as output of value added products in its oilseed extraction business.
The company was referred to the tribunal by Standard Chartered Bank as well as DBS Bank, individually and both petitions have been admitted by the court. It owed more than Rs 5,300 crore to banks at the end of 2016-17.
The company is also a part of the list of companies that were given a deadline of December 13 by the RBI to come up with a resolution plan using any of the central bank's schemes like SDR, S4A etc, failing which they will be taken to the NCLT by lenders till December 31. For this, a Joint Lenders Forum (JLF) constituted of more than 17 banks is already at work, trying to go through a suitable resolution plan that could save the company from going into the courts for insolvency resolution.
However, the two banks, not being part of the JLF had moved the NCLT for CIRP against Ruchi Soya in September, individually. Ruchi Soya owed around Rs 33 crore to Standard Chartered as on February 1, while a sum of around Rs 150 crore was owed to DBS Bank in March.
Ruchi Soya had earlier this month announced a 51% equity stake sale to private equity major Devonshire Capital for an amount of Rs 4000 crore, that the company's CMD Dinesh Shahra said , would be used to "resolve outstanding issues with banks, financial institutions and operational creditors". Fate of the deal will depend on the final order that is awaited.
The company that deals majorly in agro commodities and commodities sector has been affected in the last few years due to drought in the country as well as volatility in global commodity prices, which, coupled with low demand from export markets as well as some operational difficulties, has led to frequent losses. The company reported loss of Rs 2883 crore in the quarter ending September. Its losses for the June quarter stood at Rs 286 crore.
However, the company in a press release today announced that it eyes improved capacity utilisation after the mid-term review of the Export Policy increased export incentives for agriculture and related products. It added saying that the 2% additional incentive under the MIES scheme for soyameal will help the company increase capacity utilisation as well as output of value added products in its oilseed extraction business.
