Andhra Cements CoC decides to put two resolution plans to e-voting
The Committee of Creditors (CoC) of Andhra Cements has decided to put to e-voting both the resolution plans for approval of the CoC. It was decided in the 16th meeting of the CoC which was convened and conducted on 22 December 2022 at 2:30 PM through audio-visual means.
In an exchange filing, Andhra Cements has said: “The final resolution plans submitted by the two resolution applicants were discussed and deliberated by the CoC members and it was decided that both the resolution plans shall be put to e-voting for approval by the CoC members in accordance with section 30(4) of Insolvency and Bankruptcy Code, 2016 read with regulation 39(3)(c) of the CIRP Regulations.”
Dalmia Cement (Bharat) Limited and Sagar Cements Limited are in the race for acquiring Jaypee Group’s Andhra Cements, which is undergoing Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code.
Two other firms — Jindal Poly Films Ltd and Khandwala Finstock Private Limited – which had submitted Expression of Interest (EoI) for bidding for Andhra Cements are now out of the race.
Andhra Cements, which owes around Rs 1,600 crore to different creditors, was dragged to insolvency court by Pridhvi Asset Reconstruction and Securitisation Company Limited for defaulting on a payment of over Rs 800 crore.
The Amravati bench of the National Company Law Tribunal (NCLT) admitted Pridhvi Asset Reconstruction and Securitisation Company Limited’s insolvency petition on 28 April 2022. The NCLT appointed Nirav Kirit Pujara as the resolution professional.
The Jaypee Group company is facing financial distress for a long time and posting losses for over a decade, and its revenue has come down from Rs 515 crore on 2007-08 to Nil in 2021-22. At the end of 2021-22, its consolidated losses have reached Rs 236 crore.
Andhra Cements Limited, incorporated on 9th day of December 1936 under the Indian Companies Act 1913, and had since then experienced several changes till date with respect to the promoters and management.
Earlier, the Management of the Company transferred from the then promoters, Bennett Coleman Co. Ltd, to Duncan Group of GP Goenka who had acquired the Company in the year 1994 from BIFR. Later due to financial crises the production activity of Cement was stopped and the both the plants shut-down during the period from 2010-12 and all the production and all other operations were closed.
In 2012, the present promoters — Jaypee Development Corporation Limited (Jaypee Group) — acquired about 60% shareholding of the Company and took over the Management control with effect from February 2012.
Also Read: Auditors detect ‘fraudulent’ transactions in Andhra Cements
