NCLAT extends Patanjali’s deadline for Ruchi Soya resolution plan
today Nov 21, 2019
The National Company Law Appellate Tribunal has extended Ayurvedic fast moving consumer goods brand Patanjali’s deadline to implement its resolution plan for oil manufacturer Ruchi Soya to December 16.
Patanjali now has more time to implement its resolution plan for its Ruchi Soya acquisition as the NCLAT has moved the deadline from November 21 to December 16, the Press Trust of India reported.
"In the view of the fact that this appellate tribunal would take up the matter on December 9, we extend the period of implementation up to December 16, 2019," said the NCLAT in a statement, the Press Trust of India reported.
Patanjali’s acquisition of Ruchi Soya is intended to allow the business to greatly expand its manufacturing capacity for a number of its product categories. The business’ resolution plan totals Rs 4,350 crore ($653.9 million), which means that previous lenders to the debt ridden Ruchi Soya will have to cut back on returns by 60%.
Ruchi Soya went into insolvency in December 2017 after lead investors Standard Chartered Bank and DBS Bank filed an insolvency plea. Patanjali’s acquisition bud for the company was approved by the NCLAT in September 2019 with a proposal to infuse Rs 204.8 crore as equity and Rs 3,233.4 crore as debt.
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