In another closure achieved under India’s new bankruptcy resolution lawPatanjali Ayurved, on Wednesday (Dec 18), completed its acquisition of soya food brand Nutrela-maker Ruchi Soya by remitting ₹4,350 crore.
Patanjali settled ₹4,350 crore of dues Ruchi Soya had towards financial creditors by infusing ₹1,100 crore equity and arranging another ₹3,250 crore via debt.
Quoting sources privvy to the development, CNBC-TV18 reported that the key lenders to Ruchi Soya are set to recover over 45 percent of their dues. The claims by financial creditors totalled Rs 9,384 crore. Patanjali will be repaying a total of Rs 4053.19 crore to them under resolution plan.
While State Bank Of India will be recovering Rs 883 crores, two other state owned lenders -Central Bank Of India and Punjab National Bank- will be recovering Rs 397 cr and Rs 361 cr respectively.
Through this acquisition, Patanjali will own edible oil plants as well as soyabean oil brands such as Mahakosh and Ruchi Gold.
In December 2017, the National Company Law Tribunal (NCLT) ordered start of insolvency proceedings against Ruchi Soya on application of Standard Chartered Bank and DBS Bank. Shailendra Ajmera, part of consultancy firm EY, was appointed as resolution professional (RP).