NCLT nod to Rs 180-cr resolution plan for Capricorn Food Products India Ltd

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Capricorn Food Products India Ltd

The National Company Law Tribunal (NCLT) has approved the Rs 180-crore resolution plan for Chennai-based Capricorn Food Products India Ltd. The resolution plan, submitted by the consortium of Maa Kudargarhi Steel and BM Foods, was earlier approved by the Committee of Creditors by 87.5% votes.

As per the resolution plan, the Rs 79 crore has been provided for secured financial creditors against their admitted claims of Rs 193 crore. A sum of Rs 97.61 crore has been provided for working capital and Rs 3 crore will be infused for capex. The Capricorn Food Products India Ltd has Rs 25 crore surplus cash.

As per the resolution plan, the successful resolution applicant plans to infuse the entire resolution amount of Rs 79 crore through own funds. While fund for capex and work capital will come through loans provided by a special purpose vehicle created by the resolution applicant.

As per the resolution plan, the entire existing shares of the company will be extinguished without any payment to the shareholders.

The Special Purpose Vehicle (SPV) will provide a loan to the company against which the company will issue shares at Rs 10 each to the SPV. After the issuance of shares to the SPV, the name of the company (Capricorn Food Products India Ltd) could be changed by the SPV in future.

The corporate insolvency resolution process against the company was initiated by Raasa Foods Pvt Ltd in November 2020. The company owed Rs 222 crore to its creditors.

Capricorn Food Products India Ltd., is a food processing company with both export and domestic operations. It manufactures tropical fruit pulp and purees and concentrates, bulk frozen, IQF fruits & vegetables and fruit juices as per customer requirements.

Incorporated in 1998, the company has grown steadily over the years. Today, the company serves clients across North America, Europe, Asia-Pacific, Africa and Middle East.

Also Read: Rs 501-crore resolution plan for Indu Projects gets NCLT approval

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