Patanjali Ayurved Gets One More Week To Complete Ruchi Soya’s Acquisition
NCLAT allows Ruchi Soya lenders to approach it in case Patanjali fails to pay up for the acquisition in the stipulated time frame.
The National Company Law Appellate Tribunal has granted one more week to Baba Ramdev-backed Patanjali Ayurved Ltd. to complete the Rs 4,350-crore acquisition of Ruchi Soya Industries Ltd.
A three-member NCLAT bench, headed by Chairperson Justice SJ Mukhopadhaya, extended the deadline to Dec. 23.
Earlier, on Nov. 20, the appellate tribunal had extended the deadline till Dec. 16 for implementation of Patanjali’s resolution plan for Ruchi Soya. The original deadline for implementation of the resolution plan was Nov. 21.
The NCLAT's order came over an application moved by the Haridwar-based firm seeking extension of timeline. The appellate tribunal also granted liberty to the lenders of debt-ridden Ruchi Soya to approach it in case Patanjali fails to make the promised payment within the stipulated time frame.
Senior Advocate AS Chandhiok, appearing on behalf of Patanjali in the NCLAT, said that a one-week extension would suffice the company to implement the plan, as the firm has already "signed agreements" with the lenders.
In September this year, Patanjali Ayurved had received approval of the National Company Law Tribunal to acquire Ruchi Soya, which went into an insolvency in December 2017.
NCLT had admitted the insolvency plea filed by two lead financial creditors Standard Chartered Bank and DBS Bank. However, later the Singapore-based DBS Bank became dissenting creditor and approached the NCLAT challenging the distribution of the proceeds from the bid submitted by Baba Ramdev-led Patanjali Ayurved.
Ruchi Soya informed the tribunal that resolution applicant Patanjali Group will infuse Rs 204.75 crore as equity and Rs 3,233.36 crore as debt.
The amount will be infused in special purpose vehicle 'Patanjali Consortium Adhigrahan Pvt. Ltd.', which will be later amalgamated with Ruchi Soya.
Another Rs 900 crore will be infused by the Patanjali Group through subscription of non-convertible debentures and preference shares in the special-purpose vehicle. It will also provide a credit guarantee of nearly Rs 12 crore.
On April 30, a committee of creditors had approved Patanjali Group's Rs 4,350 crore resolution plan to take over Ruchi Soya. Lenders will have to take a haircut of around 60 percent.
