SNJ Breweries resolution plan for Privilege Industries gets NCLT nod

The NCLT has approved the resolution plan submitted by Chennai-based distillery SNJ Breweries Private Limited for Privilege Industries, a Maharashtra-based manufacturer of beverages. The value of payments as envisaged in the approved resolution plan to all stakeholders is Rs 383.30 crore including CIRP costs (payable at actuals). The resolution plan also has provision of payment of profits earned during CIRP period & EBITDA surplus to Secured FCs as additional consideration. The average fair value of Privilege Industries was arrived at Rs 283 crore while liquidation value is arrived at Rs 213 crore.

SNJ Breweries will make additional investments and infuse an estimated Rs 110 crore to operationalize, revive and run the business of Privilege Industries as a going concern. The Approved Resolution Plan provides for full upfront payment (all amounts under the Approved Resolution Plan are to be paid within 60 days). The plan was earlier approved by the CoC with a 79.60% majority.

As per the resolution plan, secured creditors would receive a sum of Rs 379 crore against their admitted claims of Rs 557 crore. Unsecured creditors would receive Rs 1.72 crore against their admitted claims of Rs 140 crore. The plan has offered Rs 2.27 crore to operational creditors against their claims of Rs 21 crore.

The Corporate Insolvency Resolution Process (CIRP) against Privilege Industries, a HDIL group company, was initiated by Punjab & Maharashtra Co-operative (PMC) Bank Ltd after it defaulted on a payment of Rs 103 crore.

SNJ Breweries has a major presence in the alcohol manufacturing industry with its own ENA unit, distilleries (Grain & Molasses), breweries & IMFL units. It has earlier successfully taken over Empee Distilleries Ltd as a going concern under the Insolvency and Bankruptcy Code and has not defaulted in implementation of this resolution plan.

The Successful Resolution Applicant has proposed for liabilities pertaining to operations of Crown Beers India Private Limited (CBIPL) to be taken up separately by CBIPL as per provisions of Settlement Agreement dated 18 January 2021.

Also See: NCLAT rejects ex-promoter’s appeal against resolution order of Empee Distilleries