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Ruchi Soya lenders approve Adani Wilmar's resolution plan

Ruchi Soya lenders approve Adani Wilmar's resolution plan

Ruchi Soya lenders approve Adani Wilmar's resolution plan
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By Ritu Singh  Aug 24, 2018 11:25 AM IST (Published)

Adani Wilmar and Baba Ramdev's Patanjali group have been engaged in a long-drawn battle to take over Ruchi Soya.

After two rounds of intense bidding, Adani Group’s agribusiness arm, Adani Wilmar, has emerged as the winner to take over India’s largest edible oil-maker Ruchi Soya.

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Adani Wilmar and Baba Ramdev's Patanjali group have been engaged in a long-drawn battle to take over Ruchi Soya.
Adani’s bid stood at Rs 6,014 crore compared to Patanjali Group’s Rs 5,700 crore offer, sources told CNBC-TV18. Patanjali Group was the second highest bidder for Ruchi Soya and lost out to Adani after a Swiss-challenge method of bidding.
Over 96 percent of the creditors' committee voted in favour of Adani Wilmar’s proposal, said people aware of the matter. As per the Insolvency & Bankruptcy Code (IBC) norms, a minimum of 66 percent of the creditors’ votes required to pass a resolution plan. The resolution professional will now seek approval from the National Company Law Tribunal (NCLT).
Ruchi Soya is one of the defaulters named in the Reserve Bank of India's (RBI) second IBC list and was taken to NCLT by Standard Chartered Bank and DBS Bank, individually, and both petitions were admitted by NCLT.
With an exposure of Rs 1,822 crore, State Bank of India is the largest lender to Ruchi Soya. The oil-maker has a debt of over Rs 9,000 crores to 24 financial creditors.
Of the Rs 6,014 crore offered for Ruchi Soya, about Rs 4,300 crore will be paid to lenders and the remaining Rs 1,714 crore will be infused into the company for its operations.
Adani Wilmar has already secured Competition Commission of India's (CCI) approval for this deal.
Adani Wilmar and Ruchi Soya could not be reached for comments on this story.
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