Bizman Ajay Bikram Sigh acquires Eastern Silk Industries
The NCLT has approved the Rs 61 crore resolution for Kolkata-based textile manufacturer Eastern Silk Industries Ltd. The successful resolution applicant — Ajay Bikram Singh — owns Austria-based textile company Baumann Dekor.
The Resolution plan submitted by Singh was earlier approved by the Committee of Creditors (CoC) by 88.30% vote share.
As per the resolution plan, secured creditors receive a total of Rs 58.2 crore against their admitted claims of Rs 894 crore. The resolution plan made no provisions for unsecured creditors, who had admitted claims of Rs 40.7 crore. The plan also made provisions for payment of Rs 1.2 crore each for workmen, employees dues as well as government dues. Other operational creditors receive Rs 12 lakh against their admitted claims of Rs 62 lakh.
Eastern Silk Industries was dragged to insolvency court by Export-import Bank of India in June 2022 for failing to clear dues of Rs 69 crore. The company owed Rs 982 crore to different creditors including Rs 933 crore to financial creditors.
It owes a maximum Rs 266 crore Edelweiss Asset Reconstruction Company Ltd followed by Rs 264 crore to Asrec (India) Ltd (an asset reconstruction company), and Rs 218 crore to Omkara Assets Reconstruction Pvt Ltd.
Eastern Silk Industries in engaged in spinning weaving, furnishing and manufacturing of textiles. It is promoted by Sudeep Shah and family, who together hold about 51% in the company.
In 2021-22, the company generated a total revenue of Rs 73.14 crore 90 crore in the previous year. It made a loss of Rs 6.86 crore during the year against a loss of Rs 10 crore in the previous year.
According to the company’s Annual Report in 2021-22, the performance of the company during 2021-22 showed decrease in the sales due to the non-supportive markets and varied changes in the customer preferences. As the global textile market is interconnected, this outbreak has a global impact due to travel restrictions and raw materials shortages.
The successful bidder — Ajay Bikram Singh of Baumann Dekor GmbH, also owns of Warps & Wefts, a Dubai-based sales agency. Baumann Dekor itself has gone into insolvency twice since 2011.
Also See: NCLT approves Rs 176-crore resolution plan for Indian Sugar Manufacturing Company Ltd
