NCLAT gives another week to Patanjali Ayurved to complete Rs 4,350-cr Ruchi Soya deal
New Delhi, December 17 () The National Company Law Appellate Tribunal (NCLAT) on Tuesday granted another extension, one week, to Baba Ramdev led by Patanjali Ayurved for completing a Rs 4,350-crore resolution plan to obtain of debt-ridden oil company Ruchi Soya.
A three-member NCLAT bench chaired by Chairperson Justice S J Mukhopadhaya has extended the deadline until December 23.
Earlier, on November 20, the appeals tribunal extended the deadline to December 16 for the implementation of the resolution plan for Ruchi Soya. The original deadline for implementing the resolution plan was November 21st.
The NCLAT order came with an application transferred by a Haridwar-based firm seeking an extension of the timeline.
However, the appeals tribunal also granted the freedom to lenders Ruchi Soya to approach it in case Patanjali failed to make the promised payment within the stipulated time.
Senior Advocate A S Chandhiok, who appeared on behalf of Patanjali at NCLAT, said a one-week extension was enough for the company to implement the plan, as the firm had signed an agreement with the lenders.
In September this year, Patanjali Ayurved received the approval of the National Company Law Tribunal (NCLT) to remove Ruchi Soya, who went on an insolvensy in December 2017.
The NCLT acknowledged the futile plea filed by two leading financial creditors Standard Chartered Bank and DBS Bank. However, Singapore-based PCS later became a dissenting creditor and approached NCLAT challenging the distribution of proceeds from a bid submitted by Baba Ramdev led by Patanjali Ayurveda.
Ruchi Soya informed the tribunal that the resolution of the applicant Patanjali group would infuse Rs 204.75 crore as equity and Rs 3,233.36 crore as debt.
The amount will be infused with the special purpose vehicle (SPV) 'Patanjali Consortium Adhigrahan Pvt Ltd', which will later merge with Ruchi Soya.
Another Rs 900 crore will be infused by the Patanjali group through subscription of immutable debentures and preference shares to SPV. It will also provide a credit guarantee of nearly Rs 12 crore. On April 30 this year, a committee of creditors approved Patanjali's Rs 4,350 crore resolution plan to take over Ruchi Soya. Lenders need to get a cut of up to 60 percent. KRH HRS