Patanjali allowed to participate in Rolta India CIRP as resolution applicant
The Mumbai Bench of the National Company Law Tribunal (NCLT) has allowed Patanjali Ayurved Ltd to participate in the corporate insolvency resolution process of Rolta India Ltd as resolution applicant. The tribunal has also allowed all the resolution applicants to revise their bids and submit their respective legally compliant resolution plans.
The NCLT heard the interlocutory application by Patanjali Ayurved on 12th February, in which the applicant had requested the tribunal to allow it and/or direct the CoC to allow it to participate as resolution applicant and submit resolution plan in the corporate insolvency resolution process of the Corporate Debtor, and direct the CoC to issue Information Memorandum, Evaluation Matrix and grant access to Virtual Data Room of the Corporate Debtor to enable Applicant to file resolution plan.
Patanjali had also requested the tribunal to direct the CoC to evaluate and consider its resolution plan in parity with other resolution plans; and pass directions for interim stay on CoC from considering resolution plans or from voting on resolution plan during the pendency of the present application.
While the Committee of Creditors has resolved to consider Patanjali’s resolution plan, considering the offer of higher value that too upfront in single instalment, it argued against the re-run of the whole process citing further delay in the resolution process.
The lead counsel for the resolution professional further informed that the consideration of the Patanjali’s Resolution Plan would require additional time, and accordingly the NCLT allowed the extension in CIRP period.
The insolvency proceedings against Rolta India was initiated by Union Bank of India as the former defaulted on a payment of Rs 1,413 crore to a consortium of lenders comprising Union Bank of India and Bank of India. The NCLT admitted the insolvency petition on 19 January 2023.
The company owes Rs 14,000 crore to its different creditors, including Rs 13,700 to its secured and unsecured creditors. Among secured creditors Union Bank of India with Rs 2,262 crore admitted claims has the highest voting share of 17.21%. Among unsecured creditors, Citicorp International Limited (as trustee) has the highest claims of Rs 4,613 crore and a voting share of 35%.
Also See: Rolta India is back in insolvency court, this time for defaulting on a payment of Rs 1,413 crore
