Base Corporation up for sale ‘again’ at reserve price of Rs 67.57 crore
After many failed attempts in the past, Base Corporation Limited (in Liquidation), a company previously involved in the manufacturing of lead-acid batteries, is once again set to undergo a joint e-auction for the sale of its assets. The e-auction, which will be conducted on 4th August 2025, will offer the company’s assets on an “AS IS WHERE IS,” “AS IS WHAT IS,” “WHATEVER THERE IS,” and “WITHOUT RECOURSE BASIS”.
Prospective bidders can participate through the online e-auction platform, https://baanknet.com/.
Key Assets on Offer and Important Dates:
The sale notice details three main groups/lots of assets:
- Base Corporation Ltd (CD) as a Going Concern (UNIT-SOLAN): This lot includes the Corporate Debtor’s Factory Land and Building, along with the Personal Guarantor Mr. Rakesh Sharma’s land situated in the factory premises, all located in Village Oachghat, Solan District, Himachal Pradesh. The combined reserve price for this lot is ₹67.57 Crore, with an Earnest Money Deposit (EMD) of ₹6.757 Crore. This sale aims to recover a significant amount of ₹36,63,58,49,663.76, including interest and charges, as on the admission date of the Personal Guarantor to CD NCLT (December 19, 2023).
- Plant And Machinery of Corporate Debtor: This lot has a reserve price of ₹13.00 Crore and an EMD of ₹1.300 Crore.
- Non-Core Assets of Corporate Debtor (Under IBC Code, 2016): These assets have a reserve price of ₹54.96 Lakhs and an EMD of ₹5.496 Lakhs.
Crucial Dates for Bidders:
- Submission of Requisite Forms, Affidavits, Declaration: Until July 29, 2025.
- Site Visit / Inspection/Due Diligence Date: On or before July 31, 2025.
- Last Date for Submission of EMD: August 1, 2025, till the end of banking hours.
- Date and Time of E-Auction: August 4, 2025, from 10 A.M. to 5 P.M. for all three lots, with unlimited 5-minute extensions for incremental bids.
- Declaration of Highest Bidder: August 7, 2025.
Konduru Prasanth Raju is serving as the Liquidator for Base Corporation Limited, and Harsh Magia is the Authorized Officer of Phoenix ARC Private Limited, acting as the Lead Representative of the Consortium of Banks. Interested parties are advised to conduct their own independent inquiries regarding encumbrances, title, and any claims affecting the secured assets prior to bidding.
The NCLT ordered the liquidation of the company on 26 April 2022 after the Committee of Creditors (CoC) failed to approve any resolution plan within the stipulated timeframes. The company owes Rs 3,663 crore to its creditors.
The CIRP against Base Corporation Limited saw multiple extensions and attempts to find a viable resolution plan. However, despite efforts, no plan garnered the necessary approval from the CoC. The CIRP period officially expired on September 4, 2020, leading to the application for liquidation.
Konduru Prasanth Raju has been appointed as the liquidator for Base Corporation Limited. The liquidator has been trying to sale the company as going concern since December 2022 without any success.
Background
The Bengaluru bench of the National Company Law Tribunal (NCLT) had initiated the Corporate Insolvency Resolution Process (CIRP) against Base Corporation Limited in August 2019 after a petition against the company was filed by Phoenix ARC Private Limited, a financial creditor seeking to recover a staggering debt of over ₹530 crore.
Base Corporation Limited, incorporated in 1987, was once a prominent player in the manufacturing, importing, exporting, and trading of lead-acid batteries, operating two plants in Solan, Himachal Pradesh, and Anegolu Village, Tamil Nadu. Its journey into financial distress, however, paints a vivid picture of escalating debt and failed restructuring efforts.
A Web of Loans and Consortiums
The company’s expansion ambitions led it to seek substantial financial assistance. Initially, State Bank of Hyderabad provided a loan facility in 2009. As its needs grew, Base Corporation engaged with several other banks and financial institutions, eventually forming a “Multiple Banking Arrangement Scheme” in 2009. This arrangement evolved into a more structured “Consortium Arrangement” by 2013, with State Bank of Hyderabad acting as the lead bank and security agent.
Under this consortium, Base Corporation secured significant working capital facilities, initially amounting to ₹450 crore, which were later enhanced to ₹475 crore. Parallelly, a separate consortium of banks, also led by State Bank of Hyderabad, extended term loan facilities of ₹270 crore for a new manufacturing plant in Hosur. These loans were secured by various documents, including common loan agreements, deeds of hypothecation, and personal and corporate guarantees.
The Restructuring Attempt and Its Failure
By early 2014, with State Bank of Hyderabad’s exposure reaching ₹105 crore in fund-based working capital, ₹60 crore in non-fund based working capital, and ₹50 crore in term loans, Base Corporation found itself in a precarious financial position. The company was subsequently referred to the Corporate Debt Restructuring (CDR) Forum.
A restructuring package was approved in September 2014, leading to the execution of a Master Restructuring Agreement. This agreement aimed to reorganize the company’s various facilities, with State Bank of Hyderabad appointed as the monitoring institution. Additional security documents were executed to fortify the restructured loans.
However, despite these concerted efforts, Base Corporation failed to adhere to the terms of the restructured agreement. Repeated requests from State Bank of Hyderabad to regularize loan accounts went unheeded. Consequently, on November 30, 2015, the company’s account was classified as a non-performing asset (NPA). The restructuring efforts ultimately collapsed, and Base Corporation was formally exited from the CDR mechanism in October 2016.
Phoenix ARC Steps In, Insolvency Looms
In March 2016, Phoenix ARC Private Limited, an Asset Reconstruction Company, acquired the debt and underlying securities from State Bank of Hyderabad through an Assignment Agreement. This transfer effectively placed Phoenix ARC in the shoes of the original lender, granting it the sole right to recover the outstanding dues.
With Base Corporation continuing its default, Phoenix ARC initiated recovery proceedings under the SARFAESI Act, issuing demand notices and eventually taking symbolic possession of the company’s land assets in Tamil Nadu and Himachal Pradesh in 2017. Concurrently, Phoenix ARC, alongside other consortium banks, pursued proceedings before the Debt Recovery Tribunal.
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