Patanjali challenges Ruchi Soya CoC’s decision
Ramdev-led Patanjali Ayurved has approached the National Company Law Tribunal, challenging the decision by Ruchi Soya's lenders to approve Adani Wilmar's ~60-billion takeover bid. The matter is expected to come up for hearing on August 27 before the NCLT, sources said.
Ramdev-led Patanjali Ayurved has approached the National Company Law Tribunal (NCLT), challenging the decision by Ruchi Soya’s lenders to approve Adani Wilmar's ~60 billion takeover bid.
The matter is expected to come up for hearing on August 27 before the Mumbai bench of the NCLT, sources said.
Patanjali Spokesperson S K Tijarawala declined to comment, saying the matter is sub-judice. A spokesperson of Adani Group also declined to comment.
On Thursday, Adani Wimar’s bid was approved by the committee of creditors (CoC) of the bankruptcy-bound Ruchi Soya with about 96 per cent votes in favour. The resolution professional has to seek NCLT approval after the lenders choose a bid.
Adani Wilmar and Patanjali group have been engaged in a long-drawn battle to take over Ruchi Soya.
While Adani Wilmar emerged as the highest bidder with a ~60 billion offer, Patanjali group came second with a ~57 billion e bid.
Patanjali Ayurved had earlier sought clarification from the RP (resolution professional) of Ruchi Soya related to eligibility of Adani Group to participate in the bidding process. It also sought to know the parameters adopted by the RP to declare Adani Wilmar as the highest bidder. The Haridwarbased firm had also questioned the appointment of Cyril Amarchand Mangaldas as the RP’s legal advisor as the said law firm was already advising Adani Group.
Patanjali was asked to submit a revised bid by June 16 to match or better the highest offer of ~60 billion by Adani Wilmar under the Swiss Challenge system adopted by the RP and the committee of creditors. However, Patanjali wrote to the RP seeking clarifications instead of submitting a fresh bid.
Adani Wilmar has been selected by the CoC after tworounds of bidding. Ruchi Soya, which is facing the insolvency proceedings, has a total debt of about ~120 billion. The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.
In December 2017, Ruchi Soya Industries entered into the Corporate Insolvency Resolution Process and Shailendra Ajmera was appointed as the RP. The appointment was made by the NCLT on the application of the creditors Standard Chartered Bank and DBS Bank, under the Insolvency and Bankruptcy Code.