Ruchi Soya deal: After creditors of debt-ridden firm selected Adani Wilmar’s resolution plan, Baba Ramdev’s Patanjali moved NCLT seeking its disqualification.
Ruchi Soya deal: Slugfest over the acquisition of Ruchi Soya refuses to die down. After creditors of debt-ridden firm selected Adani Wilmar’s resolution plan, Baba Ramdev’s Patanjali moved NCLT seeking its disqualification. Patanjali’s foremost argument is that Adani Wilmar is not eligible to make a bid according to Section 29A of the the Insolvency and Bankruptcy Code (IBC).
Since Pranav Adani, MD of Adani Wilmar and a relative of Adani Group chief Gautam Adani, is related to Vikram Kothari family, former promoter of Rotomac group, which has allegedly defaulted on nearly Rs 3,700 crore in bank loans, Patanjali has sought cancellation of the approval for the Adani Wilmar bid, The Indian Express has learnt. The relatives of defaulters are not allowed to make bid for firms which are undergoing corporate insolvency resolution.
About Ruchi Soya
Ruchi Soya has a debt of nearly Rs 12,000 crore to its creditors which also includes country’s largest lender – State Bank of India (SBI). In December last year, NCLT admitted Ruchi Soya for a corporate insolvency resolution process after initiation by financial creditors namely Standard Chartered Bank and DBS Bank. The acquisition of the company is very significant for the bidders which are seeking control of the edible oils market.
The major brands of the debt-ridden company include Nutrela soya foods, Mahakosh soyabean oil and Sunrich sunflower oil. This acquisition would offer Adani Wilmar control of about one-third of the market, or boost Patanjali Ayurveda in its plans to expand further.
Meanwhile, the matter will be heard by NCLT on September 7. The deadline of 270 days for resolution of debt under the IBC is due to end on September 12