Ruchi Soya lenders approve Adani Wilmar's Rs 60-billion resolution plan

The insolvency and bankruptcy proceedings for Ruchi Soya have entered the last leg as lenders have approved of Adani Wilmar’s resolution plan with a majority vote of 96.7 per cent by the committee of creditors (CoC). Adani Wilmar’s bid of Rs 60 billion was approved by the lenders on Thursday night. 

As the only other contender in the race to acquire Ruchi Soya, Patanjali Ayurved had made a bid offer of Rs 57 billion for the company. 

Last week, the Competition Commission of India approved of Wilmar’s resolution plan. 

The resolution professional appointed to Ruchi Soya will file the resolution plan, submitted by Wilmar, with the National Company Law Tribunal on Friday for final approval. 

Adani Wilmar is a joint venture between Adani Group and Singapore’s Wilmar International and was declared the ‘H1’ bidder (highest) by Ruchi Soya’s CoC on June 14.

Ruchi Soya owes Rs 120 billion to the lenders. Based on the offer made by Adani Wilmar, the financial creditors will take a 50 per cent haircut on its exposure to the company.

The insolvent edible oil-manufacturer has many manufacturing plants and its leading brands, including Nutrela, Mahakosh, Sunrich, Ruchi Star, and Ruchi Gold, will add strategic marketing and brand value to Adani Wilmar’s product range.

Adani Enterprises’ stock price closed at Rs 210.95 on the BSE, down 1 per cent from its previous closing price.