Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
11,921.50-96.9
Stock Analysis, IPO, Mutual Funds, Bonds & More

Kwality insolvency: NCLT directs lenders to consider Haldiram Snacks' revised offer of Rs 145 cr

The Delhi-based bench of the tribunal has also extended the Corporate Insolvency Resolution period by another three weeks and directed the Committee of Creditor (CoC) to reconsider the enhanced offer. Earlier, the lenders of Kwality Ltd had reject...

PTI|
Nov 15, 2019, 05.17 PM IST
0Comments
Agencies
Untitled-20
In 2018, the NCLT ordered insolvency proceedings in Kwality on a petition filed by global private equity firm KKR.
New Delhi: The National Company Law Tribunal (NCLT) has directed the lenders of Kwality Ltd to reconsider the revised Rs 145-crore offer by Haldiram Snacks to acquire the debt-ridden dairy firm.

The Delhi-based bench of the tribunal has also extended the Corporate Insolvency Resolution period by another three weeks and directed the Committee of Creditor (CoC) to reconsider the enhanced offer.

Earlier, the lenders of Kwality Ltd had rejected the Rs 142 crore bid of Delhi-based Haldiram Snacks, which emerged as the sole bidder to acquire the debt-ridden dairy firm.

Following which, Haldiram Snacks had revised its offer marginally and approached the NCLT with a plea that its latest resolution plan should be considered by the lenders as the offer is higher than the liquidation value.

In 2018, the NCLT ordered insolvency proceedings in Kwality on a petition filed by global private equity firm KKR. Shailendra Ajmera, who is part of multinational consultancy firm EY, has been appointed as the resolution professional to conduct the insolvency proceedings.

On November 2, the CoC had rejected Haldiram Snacks' Rs 142 crore resolution plan, as only about 40 per cent of the lenders voted in favour of the resolution plan as against the requirement of 66 per cent.

Kwality has a total debt of around Rs 1,900 crore.

Haldiram Snacks had earmarked Rs 135.64 crore for the financial creditors out of its total offer of Rs 141.59 crore to acquire Kwality Ltd.

Post rejection of its offer, Haldiram had written a letter on November 4 to IRP, revising its offer to Rs 139 crore for financial creditors, taking the total value of the bid to Rs 144.95 crore.

Haldiram has filed a petition before the NCLT, requesting that RP should be directed to place the revised bid before the COC for consideration.

It had requested the NCLT to direct the resolution professional to place the latest offer before the CoC for consideration.

"The said letter (November 4, 2019) offers an increase in the offer value to financial creditors by Rs 3.3 crore to Rs 139 crore from Rs 135.64 crore and consequently, the total offer value to Rs 144.95 crore," it had said.

Haldiram also added that its improved offer "will help financial creditors derive a much better value they can hope to realise in the event corporat debtor (Kwality) is put into liquidation".

In 2016, Kwality had raised Rs 300 crore from KKR India Financial Services and got additional commitment of Rs 220 crore. The amount was raised to fund its expansion plans and enter into consumer segment.

The company is engaged in the business of milk processing and manufacturing of dairy products, including ghee, milk powders, lassi, chaach and flavoured milk. It owns two milk processing units, one in Softa, Haryana, and another in Dibai, Uttar Pradesh.

Haldiram sells sweets and other snacks through its own outlets as well as retail chain.

Also Read

DHFL stares at insolvency proceedings

DHFL stares at insolvency proceedings

Cauvery Power to face insolvency proceedings

DHFL insolvency process starts, investors' claims sought

First personal insolvency petition filed in Amaravati

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service