Empee Distilleries receives four resolution plans; CoC to decide, says RP

NCLT had started the insolvency process after a petition was filed by the Union Bank of India

Four companies have shown interest in reviving Empee Distilleries, which is currently under Corporate Insolvency Resolution Process (CIRP) for not paying over Rs 300 crore dues to financial creditors.

The Resolution Professional (RP) for the company, S Rajendran, in a regulatory filing, said the company has received resolution plans from four applicants and the applications have been submitted to the Committee of Creditors (CoC) for their consideration and approval. The decision of the CoC is awaited, said the RP.

The RP had called for expression of interest on May 27, and the last date of submission of resolution plans was extended to July 12.

According to RP's filing with the exchanges, the total amount claimed by financial creditors and operational creditors is over Rs 1,350 crore, including over Rs 335.56 crore from the CoC. The amount admitted from the claimed amount is around Rs 469.31 crore.

The admitted amount from the financial creditors, out of the claims Rs 335 crore, is around Rs 302.73 crore, including Rs 148.45 crore from Edelweiss Asset Reconstruction Company Ltd, Rs 78.05 crore from Andhra Bank, Rs 54.46 crore from IDBI Trusteeship Services Ltd and Rs 11.34 crore from Union Bank of India. 

The National Company Law Tribunal (NCLT), Chennai, had started the insolvency process after a petition was filed by the Union Bank of India.

The bank had claimed default of Rs 10.18 crore on December 31, 2015. The financing was done through a multi-banking arrangement, in which 60 per cent of the finance was from Andhra Bank and the rest by the Union Bank of India. The company did not file any counterclaim, documents or objections to the petition after attempts to settle the matter failed.