CoC for RCI Industries constituted; Rs 268 crore claims submitted

The committee of creditors (CoC) for resolution of RCI Industries and Technologies Ltd insolvency case has been recently constituted with Union Bank having the highest voting share of 35.45%, according to an exchange filing.

The CoC for RCI Industries and Technologies Ltd has nine financial creditors including seven scheduled commercial banks and two NBFCs. Union Bank, which has the largest claim with Rs 95.16 crore, has the largest voting share at 35.45% followed by PNB having claims of Rs 43.58 crore and voting share of 16.23%, State Bank of India (Rs 34.65 crore claims) having 12.91% voting share. Other major lenders include Indian Bank with 10.44% voting share.

So far the Interim Resolution Professional – Brijesh Singh Bhadauriya – has received a total of Rs 268 crore claims from financial creditors.

According to the Interim Resolution Professional, so far 20 claims have been received and the CoC has been constituted after the verifications of the claims. The list of lenders in the CoC will be updated as and when other claims and clarifications on claims are received over the period of time as stipulated by IBC.

The insolvency process was initiated against RCI Industries and Technologies Ltd after the Delhi bench of NCLT admitted the insolvency application filed by Standard Chartered Bank (Singapore) Ltd, which has a factoring agreement with one of the suppliers of RCI Industries and Technologies – Sizer Metals Pte Ltd.

(Note: A factoring contract is an agreement where a small business sells outstanding invoices to third parties — known as factors — in exchange for upfront cash).

The insolvency application was filed by Standard Chartered Bank (Singapore) Ltd after RCI Industries and Technologies defaulted on a payment of Rs 21 crore.

Sizer Metals Pte Ltd had supplied tin ingots and nickel full plate to RCI Industries and Technologies.

New Delhi-headquartered RCI is a manufacturer of Round and Flat Rolled Copper and Copper Alloys. It has its production plants in Baddi and Nalagarh, and warehousing facilities in Delhi, Maharashtra and Rajasthan.  The company made a consolidated loss of Rs 71 crore on a revenue of Rs 59.68 crore in 2021-22.

Also See: VHM Industries to undergo insolvency resolution process