Bids invited for Nicco Corporation, reserve price set at Rs 231.48 crore

The expression of interest (EoI) has been invited from investors for acquisition of assets of the city-based Nicco Corporation and the reserve price for sale has been set at Rs 231.48 crore, according to the document.

The Kolkata bench of the National Company Law Tribunal (NCLT) in October 2017 had ordered for "liquidation" proceedings against the debt-laden Nicco Corporation Ltd after its lenders voted against the resolution plan.

"Regulation 32 of the regulations permits the liquidator to sell the assets of the Company in a slump sale... the liquidator invites EoI for the acquisition of the sale assets, by way of slump sale," the document said.

It is to be expected that the applicants acquiring the assets of the company will endeavour to run the concern or business of company after acquisition of the sale assets, it said.

Slump sale implies that all assets will be sold as a single unit.

The company is one of the oldest cable manufacturing companies in India engaged in the business of manufacturing and marketing various types of power, electrical and specialty cables.

According to the document, company's manufacturing unit in West Bengal's Shyamnagar, Odisha's Baripada, and office spaces in Kolkata and Mumbai, among others, are listed for sale.

The company's 25 per cent holding in Nicco Parks and Resorts Ltd (NPRL) is also listed for sale but the sale of NPRL shares is subject to the rights of West Bengal Tourism Development Corporation Ltd and West Bengal Industrial Development Corporation Limited under the joint venture agreement.

In the sale process, investors can submit bids for acquiring the assets including the 25 per cent share in NRPL or excluding it.

"The reserve price of the sale assets as a whole exclusive of all taxes, levies, duties or any registration fees or any other fees/ charges is as (i) where the bid pertains to the sale assets excluding the NPRL shares, the reserve price shall be Rs. 184.98 crore; (ii) where the bid pertains to the sale assets including NPRL shares, the reserve price shall be Rs. 231.48 crore," the document said.

--IANS

bdc/nir