New Delhi-based Haldiram Group has emerged as the sole bidder for acquiring debt-ridden dairy firm Kwality Ltd., offering about Rs 130 crore in the ongoing insolvency process.
Kwality has a total debt of about Rs 1,900 crore, which means that lenders would have to take a significant haircut if they accept Haldiram's offer.
Kwality's lenders are likely to vote on Haldiram's bid in the third week of October, said people aware of the development. The company's committee of creditors met on Wednesday to take stock of the resolution process and discuss the valuation report.
Shailendra Ajmera of EY is the resolution professional for Kwality.
Global private equity firm KKR & Co. had filed insolvency plea against Kwality, which was accepted by the National Company Law Tribunal in December 2018.
Kwality had in 2016 raised Rs 300 crore from KKR India Financial Services and later received an additional commitment of Rs 220 crore. The amount was raised to fund its expansion plans and enter into consumer segment.
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