DBS, StanChart Bank file bankruptcy case against Ruchi Soya Industries
Ruchi Soya is among the 30-40 defaulters in the second list that RBI sent to banks, asking them to conclude a debt resolution process by December 13 this year
In another major insolvency filing, Standard Chartered Bank has filed a bankruptcy case against Ruchi Soya Industries with the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).
"We understand that an application has been filed by Standard Chartered Bank with the National Company Law Tribunal, Mumbai Bench, Mumbai to initiate CIRP (corporate insolvency resolution process) for Ruchi Soya Industries Limited under IBC…" the company informed the stock exchanges in a filing on Friday afternoon.
Ruchi Soya is among the 30-40 defaulters in the second list the Reserve Bank of India sent to banks, asking them to conclude a debt resolution process by December 13 this year.
Last week, the board of edible oil maker Ruchi Soya Industries had set up a committee to explore business restructuring options including creating subsidiaries for individual businesses within the company and separating businesses into individual entities.
IDBI bank, with an exposure of Rs 200 crore, is the lead banker of those who have lent loans to the company and Ruchi Soya has successfully fought the winding up petition filed by the public sector lender.
Ruchi Soya’s primary lines of business include selling packaged edible oils and soyabean chunks, oilseed extraction, edible oil refining, and wind power generation. During FY16-17, 74 percent of the company’s revenue came from its edible oils business, according to its latest annual report.Its total borrowings stood at Rs 12,232.22 crore for FY16-17.