Denim maker Blue Blends gets acquired for Rs 28.75 crore by Gujarat businessman
The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the Rs 28.75-crore resolution plan for Blue Blends (India) Ltd proposed by Amit Mahendrabhai Shah. The proposed amount of Rs 28.75 crore include Rs 7 crore for capital expenditure, Rs 5 crore for working capital and Rs 16.57 crore for the creditors. The CIRP cost has not been included in this amount because it must be met out of cash and bank balances of corporate debtor (Blue Blends), and any shortfall will be met by the successful resolution applicant (Amit Mahendrabhai Shah).
The resolution plan was earlier approved by the CoC by a vote share of 93.76%.
As per the resolution plan, an amount of Rs15.71 crore is to be distributed to the secured financial creditors against their admitted claims of Rs 98.5 crore. An amount of Rs.15.69 lakh will be distributed to the unsecured financial creditors against their claims of Rs 5.9 crore. The resolution plan has set aside Rs 69 lakh for operational creditors against their total claims of Rs 16 crore.
The successful resolution applicant will infuse the full amount in 45 days from the date of approval by the Tribunal for settling all claimants as per the Resolution Plan. The amount will be infused through equity contribution, unsecured loans, quasi-capital from group and associate concerns as well as loans from banks/ NBFC/ Financial Institutions.
Blue Blends (India) Ltd – the Corporate Debtor — was incorporated on 16th February 1981 and has been engaged in the business of manufacturing Denim fabric since the year 1995. However, due to the financial distress that the Corporate Debtor is presently going through, the manufacturing activities are being carried out on a job-work basis at its plant located at Piplaj, Ahmedabad. It has its registered office in Mumbai.
Amit Mahendrabhai Shah has over 40 years of experience in the Textiles and Construction industries. The associate entities of Shah are:
HR Impex: A family-owned partnership firm having an experience of more than 40 years of textile business engaged in the activity of Denim business mainly of Arvind Denim with a turnover of more than Rs.100 crores per annum.
Nirdeep Exports and Imports Pvt Ltd: A family-owned company engaged in the activity of construction of Residential and Commercial complexes in and around Gandhinagar and renting of immovable business.
Alin Leasing and Fin stock Pvt Ltd: A Company engaged in the business of construction of various industrial estates in Ahmedabad.
Amit Shah HUF: A HUF in the business of construction and holding land parcels valued at more than Rs.250 crores.
Also See: Mercury Terra Firma acquires Shree Rajeshwaranand Paper Mills for Rs 48 crore
