LM: NCLT approves Patanjali’s ₹4,350-crore revised bid for Ruchi Soya

25 July 2019: The National Company Law Tribunal (NCLT) Thursday approved yoga-exponent-Ramdev-run Patanjali’s revised ₹4,350-crore bid to take over the edible oil maker Ruchi Soya, which owed banks over ₹9,345 crore.

However, the tribunal said the approval is subject to the tribunal resolution professional bridging the information gap regarding the exact source of funds worth ₹600 crore (which is part of the bid amount) before the next date of hearing on August 1.

The tribunal also asked the resolution professional to furnish the actual cost of the entire resolution process before the next hearing.

“The resolution professional is directed to submit detailed break-up of the entire cost for the corporate insolvency resolution process before the next date of listing on August 1,” the tribunal said.

The LiveMint reported

LM: Cox & Kings defaults on ₹174 crore commercial papers

25 July 2019: Tours and travel services firm Cox & Kings on Wednesday said it has defaulted on commercial papers worth ₹174 crore.

This is another instance within a span of four weeks that the beleaguered firm has defaulted on meeting financial obligations.

“The company is working closely with its lenders to optimise its strong asset base globally and bring the situation back to normal as soon as possible,” Cox & Kings said in a regulatory filing.

Earlier in a regulatory filing on July 16 this year, the company had said it defaulted on payment on unsecured commercial papers worth ₹45 crore.

On July 1, Cox & Kings had said in a filing that company’s working capital situation was stretched in the last few months, which was further impacted due to its inability to replace the short term loans with long term loans or regular working capital lines.

The company is taking all required measures to resolve the temporary cash flow mismatch, it had said.

Shares of Cox & Kings closed at ₹14.75 per scrip on the BSE, down 4.84 per cent from the previous close.

The LiveMint reported

FE: NCLAT upholds liquidation order for Moser Baer Solar

25 July 2019: The National Company Law Appellate Tribunal (NCLAT) has upheld NCLT’s liquidation order for Moser Baer Solar (MBSL). As the debt-ridden company failed to find any takers within the stipulated 270-day time-frame since initiation of the insolvency process in November 2017, the National Company Law Tribunal (NCLT) had, on May 30, 2019, ordered the company to go under liquidation.

The two-member NCLAT bench, headed by Justice S J Mukhopadhaya, however, ordered on Tuesday that MBSL can ‘continue as a going concern to ensure revival and resolution even during the liquidation process’. Challenging NCLT’s order, MBSL had approached NCLAT contending that the company was eligible for Rs 270 crore subsidy from the Central government and ‘the order of liquidation may affect the corporate debtor and if the Cental government comes to know that it has gone for liquidation, it may not allow subsidies’.

“More than 270 days have already been completed and in absence of any resolution plan, the order (by NCLT) of liquidation was passed. We find no illegality in the said order,” the NCLAT bench said.  On January 15, 2019, ministry of electronics and information technology had informed the company that the disbursement of the subsidy was not being acceded. Following which, MBSL moved the high court, but the petition was dismissed on February 25, 2019.

The company then filed a review petition to a single bench which ordered Meity to re-examine the claim. “We are of the view that it is still open to Meity to release subsidies, if otherwise possible, as inspite of the order of liquidation, the corporate debtor is to continue as a going concern to ensure revival and resolution even during the liquidation process,” the NCLAT bench observed.

The Financial Express reported