Ruchi Soya lenders approve Adani Wilmar's 6000 crore takeover; Ramdev led Patanjali moves NCLT

Last Updated: Sat, Aug 25, 2018 18:47 hrs
Adani vs Patanjali

Mumbai: Yoga guru Baba Ramdev led Patanjali Ayurved has approached the National Company Law Tribunal in a bid to challenge the decision by Ruchi Soya's lenders.

The lenders on Thursday had approved Adani Wilmar's Rs 6,000 crore (Rs 60 billion) takeover bid for the debt laden Ruchi Soya.

Adani Wilmar's bid was approved by a committee of creditors (CoC) for bankruptcy-bound Ruchi Soya with about 96% voting in favour of Adani Wilmar's takeover.

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 Rs 6,000 crores (Rs 60 billion) offer, Patanjali group came second with a Rs 5,700 crore (Rs 57 billion) 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 Haridwar-based 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 Rs 60 billion (Rs 6,000 crore) by Adani Wilmar under a Swiss Challenge system adopted by the RP and a 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 two-rounds of bidding.

Ruchi Soya, which is facing the insolvency proceedings, has a total debt of about Rs 120 billion (Rs 12,000 crore). The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.

Spokespersons from Patanjali and Adani have declined to comment, considering the matter is sub-judice.

A Mumbai bench of the NCLT is expected to hear the case on Monday (August 27).

With Agency Inputs