DBS Bank-Singapore told the Mumbai National Company Law Tribunal (NCLT) on Tuesday it would move the tribunal against Patanjali Ayurved’s proposed Rs 4,350-crore resolution plan for debt-laden Ruchi Soya. The foreign bank claimed it has not received a fair value on assets although it enjoys the status of a first charge holder.
Adjourning the hearing, the two-member NCLT bench also asked the resolution professional (RP) to submit a summary of how Patanjali intended to fund the acquisition.
DBS is one of the 27 financial creditors to Ruchi Soya. According to documents available on the Ruchi Soya website, DBS bank-Singapore is a lender to the company and has extended it two external commercial borrowing facilities. Against this, the security interest in favour of the financial creditor is a first charge over present and future fixed assets of the company’s manufacturing refinery units at Kandla (Gujarat), along with manufacturing units at Guna, Daloda and Gadarwara in Madhya Pradesh, and Baran (Rajasthan). The lender was expected to file the papers later on Tuesday and will present its case in detail at the next hearing.
Ruchi Soya Industries was admitted into the CIRP on December 15, 2017, based on application of financial creditors Standard Chartered Bank and DBS Bank under the provisions of Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). A food and agri products company, Ruchi Soya owns several brands such as Nutrela, Sunrich, Mahakosh, Ruchi Gold and Ruchi Star.
The company posted a net profit of Rs 6.30 crore in Q3FY19 against a loss of Rs 1,956.60 crore in Q3FY18. —FE