A Bench of the National Company Law Tribunal (NCLT) has ordered the liquidation of debt-ridden dairy and allied merchandise agency Kwality Limited, after the Committee of Creditors (CoC) rejected the decision plan submitted by Haldiram Snacks, the only real bidder. The court docket three of the New Delhi Bench of NCLT handed the liquidation order on Monday, which was made out there on the tribunal’s web site on Thursday.
The firm, which was based in 1992, owes over Rs 1,900 crore to its lenders, and was admitted into insolvency in December 2018 on a petition moved by Punjab National Bank (PNB) and international personal fairness agency KKR. Despite a number of extensions within the date to submit decision plans, a joint bid of Haldiram Snacks and Pioneer Securities was the one plan in competition. Haldiram Snacks had initially made a suggestion of Rs 130 crore, improved it to Rs 142 crore, and at last revised it another time to Rs 145 crore. A majority of the funds within the decision plan had been allotted to the monetary collectors.
Haldiram Snacks’ plan, nonetheless, didn’t cross muster because it didn’t have over 66 per cent lenders voting in its favour and was subsequently rejected. Following the rejection of the plan by CoC, the decision skilled of Kwality moved an utility to liquidate the corporate because the time interval of 270 days for completion of insolvency course of was lengthy over.
Kwality Limited, which makes allied milk merchandise comparable to milk ghee, milk powders, lassi, chaach and flavoured milk, has additionally been underneath the lens of investigative authorities for dishonest a consortium of banks led by Bank of India.
In September final yr, the Central Bureau of Investigations had registered a case of fraud in opposition to the corporate’s administrators Sanjay Dhingra, Siddhant Gupta and Arun Srivastava.
