EoI invited from prospective bidders for Morarjee Textiles
The resolution professional of Morarjee Textiles Ltd, an Ashok Piramal Group company, has invited expression of interest from prospective bidders by 11:00 PM of 12th June 2024.
The prospective resolution applicants submitting the EOI must ensure that they do not suffer from any ineligibility in accordance with the provisions of Section 29A or any other provision of IBC, 2016. All the EOIs received shall be examined by the resolution professional on the eligibility criterion specified and in accordance with the provisions of IBC 2016.
The National Company Law Tribunal, Mumbai Bench (NCLT) by its order dated 09 February 2024, ordered the commencement of Corporate Insolvency Resolution Process (CIRP) in respect of Morarjee Textiles Ltd under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) and the rules and regulations made under the IBC. The insolvency petition against the company was filed by Axis Bank after the former defaulted on a payment of Rs 130 crore.
The NCLT appointed Ravi Sethia as the Resolution Professional (RP).
As part of the resolution process, the RP has so far received claims amounting to Rs 764 crore from financial creditors. Resolution professional Sethia has so far admitted claims amounting to Rs 558 crore while the rest of the claims are still under reconciliation. On the basis of the admitted claims, the insolvency resolution – Indian Bank (39%) and Axis Bank (36%) – have the highest voting shares. Other major financial creditors include Tata Capital (7.22%), ICICI Bank (5.40%) and Kotak Mahindra Bank (4.87%).
Morarjee Textiles Ltd was incorporated on 14 July 1995, with its Registered Office at New Mahalaxmi Silk Mill, Harishchandra L Nagoankar Marg, Mathuradas Mills Compound, Lower Parel Delisle Road, Mumbai, Mumbai, Maharashtra, India, 400013.
The company is engaged in manufacturing and selling of yarn and fabric. Morarjee Textiles boasts a high-profile list of clientele that includes domestic and international brands across 44 countries. This list includes brands like Uniqlo, Zara, Esprit, Next, Paul Smith, M&S, H&M, ANF, Belk, Moss Brothers to name a few. Some of the domestic client brands include names like Louis Philippe, Van Huesen, Blackberry and Zodiac.
The promoter and promoter family hold 59.71% stake in the company. The company had posted a consolidated revenue of Rs 208 crore and total losses of Rs 185 crore.
