NCLT approves ASG Hospital’s Rs 526-cr bid for Vasan Health Care
The Chennai bench of the NCLT has approved the Rs 526 crore resolution plan by Jodhpur-based ASG Hospital Private Ltd for corporate debtor Vasan Health Care. The Committee of Creditors (CoC) had earlier approved the resolution plan by 97.90% vote share.
The insolvency proceedings against Vasan Health Care were initiated by Alcon Laboratories (India) Private Ltd in 2017 for defaulting on a payment of Rs 94 crore. The company owed Rs 2,078 crore to financial as well as operational creditors.
As per the resolution plan, the financial creditors would receive Rs 394 crore against their claim of Rs 1,369 crore. This amount will be given within 30 days. The resolution plan has provided for Rs 9 crore for operational creditors against their claims of Rs 700 crore. Rs 126 crore has been provided for working capital and capex (within one year) and Rs 48 crore for CIRP cost.
As per the plan, ASG Hospital Private Ltd will infuse Rs 385 crore through a special purpose vehicle – ASG Eye Hospital Ventures Private Ltd – which has already been incorporated. Of the Rs 385 crore infusion, Rs 54 crore will be in the form of equity and rest in the form of debt.
In order to infuse the said Rs 54 crore equity, the resolution plan provides for extinguishment or cancellation of existing shares of Vasan Health Care.
ASG Hospital Private Ltd plans to fund the acquisition through a mix of internal accruals, existing bank facilities and anchor investors. Vasan Health Care has five domestic and overseas subsidiaries, the ownership of which the resolution applicant wants to continue with.
The Committee of Creditors may continue to proceed with any PUFE (Preferential, undervalued, fraudulent and extortionate) transactions cases, and the resolution applicant will support the CoC without incurring any additional cost.
Vasan Health Care owns a chain of over 100 eye care hospitals spread across India and overseas.
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