Hanung Toys & Textiles creditors suffer 98.5% haircut; Cyfuture India acquires co for Rs 78 cr
The New Delhi bench of the National Company Law Tribunal (NCLT) has approved the Rs 78 crore resolution plan submitted by Cyfuture India Private Limited for resolution of Hanung Toys and Textiles Limited (HTTL) default case. Earlier, the committee of creditors of had approved the resolution plan submitted by Cyfuture India with 87.88% voting share.
New Delhi-based Hanung Toys and Textiles Limited was engaged in the business of manufacturing and selling of stuffed toys and home furnishing products, and it was dragged to the insolvency court by financial creditor Punjab National Bank in March 2019. The company had defaulted on a payment of Rs 1,316 crore.
As per the resolution plan of Cyfuture India Private Limited, secured financial creditors of Hanung Toys and Textiles Ltd would receive Rs 71 crore against their admitted claims of Rs 4,953 crore. The plan also provides for Rs 6.25 crore as CIRP cost.
Hanung Toys and Textiles Limited (HTTL) is a company incorporated on 9 October 1990 which was engaged in the business of manufacturing and selling of stuffed toys and home furnishing products. The Company was engaged in export of manufactured products to various overseas buyers, however it suffered huge losses due to disposal of its slow and non-moving inventory and finished goods at very low prices to manage its working capital requirements. The blockage of working capital in unrealized subsidies and adverse market conditions put further pressure on operations. The corporate debtor was a public listed company as per audited annual reports issued by it for the year ended 31 March 2017. However, after the declaration of fraud and default, Hanung Toys and Textiles was delisted from both NSE and BSE (Stock Exchanges). The company has not been in operation since the year 2018.
Cyfuture India Private Limited is a company which is engaged in providing Information Technology services to its clients in India and overseas since 2001. Applicant contended that the SRA has a team of over 2000 employees catering to various sectors like e-commerce, retail, IT & Software, Education, Banking etc. It possesses Tier III Data Center Facilites and provides services like Big Data Analytics, AI, IOT etc.
It has net worth of Rs. 55.98 Crores as per audited annual accounts for the year ended 31 March 2022. Cyfuture India’s turnover exceeded Rs. 100 crores during Financial Years 2019-20 and 2021-22 with EBITDA margin of approximately 20% year on year. It has presence across 9 locations in India, USA and UK etc. and is confident of raising further capital if the need so arises.
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