Patanjali bid for Ruchi Soya: NCLT reserves order, seeks funding details again

Published : May 10, 2019, 11:35 PM IST

NCLT on Friday reserved its order on the Rs 4,350-crore offer by Patanjali to take over the crippled edible oil firm Ruchi Soya and again sought clarity on Rs 600-crore of part-funding committed as internal accruals for the acquisition.

Ruchi Soya

Mumbai: The National Company Law Tribunal (NCLT) on Friday reserved its order on the Rs 4,350-crore offer by Patanjali to take over the crippled edible oil firm Ruchi Soya and again sought clarity on Rs 600-crore of part-funding committed as internal accruals for the acquisition.

This is the second time that the tribunal has sought details of Rs 600 crore, and asked them to file written submission on the same.

The counsel for the Haridwar-headquartered Patanjali reiterated that Rs 600 crore of the Rs 4,350-crore fund will be met through internal accruals and offered to submit a written submission on the same.

The committee of creditors said Patanjali has already paid Rs 200 crore as guarantee.

Meanwhile, ICICI Bank moved the tribunal to secure Rs 65 crore dues from Ruchi Soya.

NCLT had earlier directed ICICI Bank to reverse the transactions carried out on Ruchi Soya to retrieve around Rs 48 crore and Rs 65 crore with interest, that the bank had paid towards a letter of credit from latter's current account.

Following this, ICICI Bank approached National Company Law Appellate Tribunal, who said the private lender cannot be forced to pay the amount.

Also read :L&T acquires another 2% stake in Mindtree, holding reaches 25.9%

To which, the lenders said since ICICI Bank will not pay the amount, their cut in the overall recovery amount will also be lower.

The ICICI Bank counsel said in case NCLAT reverses its order later, the lender will not only have to pay but also to take a lower haircut from the total recovery.

An NCLT bench of judges VP Singh and Ravikumar Duraisamy asked them to file a written submissions in this regard saying as ICICI Bank is also a financial creditor they will consider their application.

In December 2017, NCLT had referred Ruchi Soya for insolvency on applications moved by Standard Chartered Bank and DBS Bank and appointed Shailendra Ajmera as the RP.

Patanjali, the lone player left, had last month increased its bid value by around Rs 140 crore to Rs 4,350 crore. The offer excludes capital infusion of Rs 1,700 crore.

Ruchi Soya owes over Rs 9,345 crore to financial creditors led by the State Bank, which has an exposure of Rs 1,800 crore, followed by Central Bank at Rs 816 crore, Punjab National Bank at Rs 743 crore and StanChart at Rs 608 crore.

This is the second time that the tribunal has sought details of Rs 600 crore, and asked them to file written submission on the same.

The committee of creditors said Patanjali has already paid Rs 200 crore as guarantee.

Meanwhile, ICICI Bank moved the tribunal to secure Rs 65 crore dues from Ruchi Soya.

Following this, ICICI Bank approached National Company Law Appellate Tribunal, who said the private lender cannot be forced to pay the amount.

Also read :L&T acquires another 2% stake in Mindtree, holding reaches 25.9%

To which, the lenders said since ICICI Bank will not pay the amount, their cut in the overall recovery amount will also be lower.

The ICICI Bank counsel said in case NCLAT reverses its order later, the lender will not only have to pay but also to take a lower haircut from the total recovery.

In December 2017, NCLT had referred Ruchi Soya for insolvency on applications moved by Standard Chartered Bank and DBS Bank and appointed Shailendra Ajmera as the RP.

Patanjali, the lone player left, had last month increased its bid value by around Rs 140 crore to Rs 4,350 crore. The offer excludes capital infusion of Rs 1,700 crore.

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Patanjali bid for Ruchi Soya: NCLT reserves order, seeks
funding details again
Mumbai, May 10 (PTI) The National Company Law Tribunal
(NCLT) Friday reserved its order on the Rs 4,350-crore offer
by Patanjali to take over the crippled edible oil firm Ruchi
Soya and again sought clarity on Rs 600-crore of part-funding
committed as internal accruals for the acquisition.
This is the second time that the tribunal has sought
details of Rs 600 crore, and asked them to file written
submission on the same.
The counsel for the Haridwar-headquartered Patanjali
reiterated that Rs 600 crore of the Rs 4,350-crore fund will
be met through internal accruals and offered to submit a
written submission on the same.
The committee of creditors said Patanjali has already
paid Rs 200 crore as guarantee.
Meanwhile, ICICI Bank moved the tribunal to secure Rs
65 crore dues from Ruchi Soya.
NCLT had earlier directed ICICI Bank to reverse the
transactions carried out on Ruchi Soya to retrieve around Rs
48 crore and Rs 65 crore with interest, that the bank had paid
towards a letter of credit from latter's current account.
Following this, ICICI Bank approached National Company
Law Appellate Tribunal, who said the private lender cannot be
forced to pay the amount.
To which, the lenders said since ICICI Bank will not
pay the amount, their cut in the overall recovery amount will
also be lower.
The ICICI Bank counsel said in case NCLAT reverses its
order later, the lender will not only have to pay but also to
take a lower haircut from the total recovery.
An NCLT bench of judges VP Singh and Ravikumar
Duraisamy asked them to file a written submissions in this
regard saying as ICICI Bank is also a financial creditor they
will consider their application.
In December 2017, NCLT had referred Ruchi Soya for
insolvency on applications moved by Standard Chartered Bank
and DBS Bank and appointed Shailendra Ajmera as the RP.
Patanjali, the lone player left, had last month
increased its bid value by around Rs 140 crore to Rs 4,350
crore. The offer excludes capital infusion of Rs 1,700 crore.
Ruchi Soya owes over Rs 9,345 crore to financial
creditors led by the State Bank, which has an exposure of Rs
1,800 crore, followed by Central Bank at Rs 816 crore, Punjab
National Bank at Rs 743 crore and StanChart at Rs 608 crore.
PTI SM
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BEN
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Patanjali bid for Ruchi Soya: NCLT reserves order, seeks funding details again

NCLT on Friday reserved its order on the Rs 4,350-crore offer by Patanjali to take over the crippled edible oil firm Ruchi Soya and again sought clarity on Rs 600-crore of part-funding committed as internal accruals for the acquisition.

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