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Last Updated : May 02, 2019 02:05 PM IST | Source: Moneycontrol.com

Ruchi Soya: Lenders to take 52% haircut as Patanjali's plan gets green signal

Patanjali's proposal got a 96 percent approval from the committee of creditors after a vote on April 30.

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With Patanjali Ayurved acquiring debt-ridden oil firm Ruchi Soya in a Rs 4,350 crore deal, the lenders have agreed to a 52 percent haircut on admitted claims, Financial Express reported.

The CoC will present Patanjali's resolution plan to the National Company Law Tribunal (NCLT) on May 7. The plan got a 96 percent approval from the committee after a vote on April 30. The Baba Ramdev-led company will infuse Rs 115 crore in the company.

Sources in one of the lenders told the paper that the resolution plan offers Rs 4,235 crore to stakeholders, of which Rs 4,053 crore will go to secured lenders, whose admitted claims are nearly Rs 8,377 crore. This means their recovery is about 48 percent.

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Unsecured financial creditors will get Rs 40 crore according to the proposed plan, against a whopping Rs 1,007 crore of admitted claims, indicating a haircut of 96 percent. The bank with the most exposure to Ruchi Soya is State Bank of India, with a debt of Rs 1,822 crore through working capital loans among other things.

Other lenders include Central Bank of India, Punjab National Bank, Corporation Bank, IDBI Bank, ICICI Bank, Bank of India, Standard Chartered Bank India, UCO Bank, Union Bank of India, Bank of Maharashtra, Axis Bank, DBS Bank Singapore, Bank of Baroda, IDFC-Edelweiss ARC, Dena Bank, Karur Vyasa Bank and HDFC Bank.

The corporate insolvency resolution process (CIRP) of Ruchi Soya began in December 2017 after Standard Chartered and DBS Banks applied under Section 7 of the Insolvency and Bankruptcy Code (IBC). Many famous brands like Nutrela, Sunrich, Ruchi Gold and Ruchi Star have originated from the company. It posted a profit of Rs 30 crore in Q3FY19 as against a loss of Rs 1,956 crore in Q3FY18.

In August 2018, Adani Wilmar was also in the race and had proposed a resolution plan for Ruchi Soya wherein Rs 4,300 crore would go to financial creditors and Rs 1,700 crore equity would go into the company. It was supported by 96 percent of the creditors. However, in January, Adani Wilmar withdrew its proposal citing delays in the corporate insolvency resolution process.

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First Published on May 2, 2019 01:50 pm
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