Meghmani Organics successfully bids for Kilburn Chemicals; to infuse Rs 12.15 crore
The resolution plan submitted by Meghmani Organics Limited for Kilburn Chemicals Ltd has been approved by the NCLT on December 16, 2021.
As per the resolution plan, the resolution applicant proposes cancellation of all existing share capital of the Corporate Debtor and delisting of its shares from the recognised stock exchange on the closing date.
Simultaneous with the cancellation of the existing share capital of the Corporate Debtor, the SPV and its nominees would infuse share application money of Rs 12.15 crore and shall be allotted 1,21,50,000 shares (Face Value Rs 10 per share) of the Corporate Debtor such that the SPV and its nominees are the sole shareholders of the Corporate Debtor.
The Company shall within 30 day of the NCLT approval date, submit an application to the concerned stock exchanges and SEBI for clarification/approval to delist its shares from the recognised stock exchanges. The liquidation value due to the equity shareholders in terms of the Code is NIL. Hence, no amount shall be paid to any shareholder against cancellation of their shares.
In the aforesaid application, the Company shall disclose (i) the details of delisting of its Equity Shares; (ii) the justification for not paying any exit price to the public shareholders.
Delisting of shares
As an integral part of this Resolution Plan, the Corporate Debtor will undertake steps for delisting its Equity Shares.
Under this Resolution Plan, the Resolution Applicant is setting out a specific delisting procedure and, for the purpose of the same, the Company shall take the following steps for delisting in accordance with the provisions of Delisting Regulations read with the Notification.
The procedure proposed to complete the delisting of Equity Shares is as follows: (a) The Company shall within 30 day of the NCLT Approval Date submit an application to the concerned stock exchange and SEBI for clarification/approval to delist its shares from the recognised stock exchange, along with a copy of the Resolution Plan.
(b) Given that the liquidation value due to the equity shareholders in terms of the Code is likely to be NIL, no exit price shall be paid to any of the shareholders of the Company.
(c) The application shall contain the details of delisting and the justification for no exit price being paid to any shareholder against cancellation of their shares. No approval from the stock exchanges on which the shares are listed shall be required and the approval of NCLT for the Resolution Plan shall be deemed to be the final approval for delisting.
(d) A public announcement shall be made in at least one English national daily with wide circulation, one Hindi national daily with wide circulation and one regional language newspaper of the region where the concerned recognised stock exchange is located, within 30 day of the application to the stock exchanges.
Upon receipt of appropriate clarification/ approval from the stock exchanges and SEBI for delisting, the shares of the Company shall be deemed to be delisted. It is envisaged that such delisting shall take place within a period of 60 days from the NCLT Approval Date.
About Kilburn Chemicals
Kilburn Chemicals Limited (KCL) is a producer and exporter of Anatase Grade Titanium Dioxide in India. It produces Titanium Dioxide by the Sulphate route. KCL also manufactures and exports the by-product Ferrous Sulphate. KCL has commenced operations in November 1994.
The insolvency process against Kolkata-based Kilburn Chemicals was initiated jointly by financial creditors Bank of Baroda and State Bank of India in 2020 for defaulting on payment of Rs 209 crore.
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