National Company Law Tribunal invites bids for Maiyas Beverages and Foods

KKR India Financial Services Pvt Ltd has dragged Dairy major Kwality Ltd to the National Company Law Tribunal (NCLT) on loan default of more than Rs 1,200 crore.

KKR & Co's non-banking finance unit has filed a petition against the Kolkata-headquartered company before NCLT under the Insolvency and Bankruptcy Code (IBC).

Kwality has a debt of about Rs 2,000 crore, of which 80% had gone bad because of poor business decisions. Its market value and financial performance have also declined considerably over the past year.

Kwality Ltd is a processor and producer of several types of dairy products, which include milk, ghee, butter, milk powder, curd, yogurt and cheese under the brand 'Dairy Best'.

Yoga guru Baba Ramdev’s Patanjali Ayurved has denied the Rs 9,000 crore acquisition offer for debt-ridden edible oils maker Ruchi Soya Industries.

Patanjali spokesperson SK Tijarawala said, “Yes, Patanjali is interested in acquiring Ruchi Soya since we want to make use of their idle installed capacity but we have definitely not placed a bid for Rs 9,000 crore. After examining the company’s vitals and balance sheet, the value of the deal should be at most between Rs 1,800-2,000 crore.”

Patanjali, along with about 20 companies including Emami, Godrej Agrovet, ITC, Aion Capital Partners and global investment firm Kohlberg Kravis Roberts, is learnt to have bid to acquire Ruchi Soya Industries through the ongoing insolvency process under the National Company Law Tribunal (NCLT).

Ruchi Soya’s brand portfolio includes Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi Star. Patanjali Ayurved’s spokesperson said the acquisition was synergistic with the company since it is “swadeshi. Vital resources should be fully utilised and channelised for the benefit of consumers and farmers.”

Ruchi Soya’s debt stood at about Rs 12,000 crore as of December 31, 2017, and lenders dragged the company to the NCLT last year. The company has over Rs 4,000 crore of bad debts written off and a net worth deficit of Rs 498 crore.

Last year, the company had announced 51% stake sale to private equity firm Devonshire Capital for Rs 4,000 crore, but the deal fell through after NCLT admitted the bankruptcy case. The shortlisting of bids is expected next fortnight. Apart from being the country’s biggest edible oilseed extraction and refining company, Ruchi Soya is also the largest player in the cooking oil and soya foods category. It has 24 plants for crushing, milling, refining, and packaging.

Yoga guru Baba Ramdev run fast-moving consumer goods firm Patanjali Ayurved Ltd, has made a Rs 9,000 crore ($1.38 billion) bid to acquire bankrupt edible oils manufacturer Ruchi Soya Industries Ltd, reported a financial daily.

According to the report, Ruchi Soya has so far received bids from more than 26 suitors including ITC, Phoenix ARC, Emami Group, AION Capital Partners and private equity giant KKR.

Ruchi Soya is in the midst of insolvency resolution proceedings initiated by the National Company Law Tribunal (NCLT) following petitions from creditors Standard Chartered Bank and DBS Bank.

The company’s debt stood at around Rs 12,000 crore at the end of last year.

While all the bids are yet to be officially opened, the report quoted persons familiar with the matter as saying that Patanjali’s bid could be one of the highest.

Ruchi Soya, which sells food products and edible oils under the brands Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi Star, expects the process to be completed by June 13.

A 51% stake sale to private equity major Devonshire Capital was deemed null and void after the NCLT admitted the insolvency case against Ruchi Soya late last year.

Fast food giant, McDonald's is exploring legal options after the NCLT restored its estranged partner Vikram Bakshi as the Managing Director of Connaught Plaza Restaurants Ltd (CPRL).

Besides, restoring Bakshi as the MD of CRPL, the National Company Law Tribunal (NCLT) has also restrained the Illinois- headquartered McDonald's Corporation, the parent company of McDonald's India Pvt Ltd (MIPL), from interfering in the functioning of the joint venture.

MIPL in an official statement said, "We respect the decision of the NCLT. We are examining the judgement and exploring our legal options in the matter."

Any order of NCLT could be challenged before the National Company Law Appellate Tribunal (NCLAT) within 45 days of the order.

CPRL, a 50:50 joint venture between McDonald's India Pvt Ltd (MIPL) and Bakshi, is the licensee for north and east India regions for the fast food chain.

Vikarm Bakshi told PTI, "Our stand has been vindicated and we have got justice after fighting for the right cause. I admire the Indian judiciary which has gone in every account and delivered a judgement on Indian entrepreneurship."

He further added that CRPL would now come back to its growth and operational journey the way it was prior to 2013 and continue to progress.

Bakshi was not re-elected as the MD of CRPL following the objections of MIPL and its parent company. McDonald's had on August 30, 2013 announced that Bakshi's term as MD of CPRL had ended on July 17 following which Bakshi challenged the decision before CLB (the previous body having jurisdiction over company matters).

Consenting to his submissions that McDonald's wanted to oust him after the venture was established in India, the NCLT said, "It is with a view to grab hard labour of Mr Bakshi which has been invested in CPRL that had triggered the non- voting in his favour on the meeting dated August 6, 2013."

It added, "It is also an act against the interests of CRPL and detriment to public interest."

The tribunal also rejected McDonald's submission that as per the clauses of the agreement between them, MIPL may exercise call option, virtually ousting Bakshi from CRPL.

NCLT said, "The position of Managing Director is linked with Mr Bakshi in such a manner that if he loses his status as MD, he may also lose his shareholding by virtue of provision of clauses 26 and 32 of JV agreement."

It further said, "The argument is absurd and we reject the same."

In its 134 page order, the company law tribunal has also appointed former Supreme Court judge Justice G S Singhvi to act as administrator in the company with power to vote in the meeting of the board and restrained McDonald's Corporation from interfering into the company's affairs.

NCLT said, "Respondent No 5 (McDonald's Corp) is restrained from interfering with the smooth functioning of CPRL and all its 154 restaurants open in the assigned territory of North/East India."