Dalmia Bharat Sugar gets NCLAT nod for implementation of resolution plan for Baghauli Sugar insolvency case
Dalmia Bharat Sugar and Industries Limited’s (DBSIL) plan to revive Baghauli Sugar and Distillery Limited (Baghauli Sugar) has finally moved forward after the National Company Law Appellate Tribunal (NCLAT) cleared the way for its implementation, the former said in an exchange filing.
Earlier, the Allahabad Bench of the National Company Law Tribunal (NCLT) had approved DBSIL’s resolution plan for Baghauli Sugar in November 2023. However, the approval was conditional, requiring the resolution professional or committee of creditors to seek clarification from the Supreme Court on certain technical points. DBSIL appealed this decision to the NCLAT.
Today, the NCLAT ruled in favor of DBSIL, deleting the clauses requiring Supreme Court clarification. This paves the way for immediate implementation of the revival plan.
The overall resolution plan is for a total amount of approximately Rs.140.19 Crores which would be infused by successful resolution applicant by equity infusion, unsecured loan from Banks. The plan also provides for fund infusion of Rs 235 crore for the purpose of capex.
The fair value of Baghauli Sugar and Distillery is Rs 118 crore and the liquidation value is Rs 69 crore as per the registered valuers report.
The amount proposed under the Resolution Plan submitted by Dalmia Bharat Sugar and Industries
| Types of debt/payment | Amount provided | Terms of Payments |
| CIRP Cost | Rs 5 crore | To be paid within 90 days of the approval of the resolution plan |
| Secured financial creditors | 134.5 | To be paid within 90 days of the approval of the resolution plan |
| Operational Creditors (Goods & Services) | 0.17 crore | To be paid within 90 days of the approval of the resolution plan |
| Workmen & employees | 0.02 crore | To be paid within 90 days of the approval of the resolution plan |
| Contingent liabilities | 0.5 crore | To be paid within 90 days of the approval of the resolution plan |
| Infusion of funds for Capex | 235 crore | As and when required |
The insolvency application against Baghauli Sugar and Distillery was initiated by Bank of Baroda under Section 7 of the Insolvency and Bankruptcy Code. Vivek Raheja was appointed as the interim resolution professional and later as the resolution professional to oversee the the Corporate Insolvency Resolution Process.
The Successful Resolution Applicant — Dalmia Bharat and Sugar Industries Limited — is one of the youngest major sugar companies in India and one of the fastest-growing cane-based multi-product companies in India.
Also See: Details of resolution plan for Reliance Communications Infrastructure
