Ruchi Soya insolvency case: Lenders to meet on May 30 to discuss bids

Lenders of bankruptcy-hit Ruchi Soya are likely to meet again on May 30 to discuss bids submitted by Patanjali Ayurveda and Adani group which are in the race to acquire the Indore-based edible oil firm.

A Committee of Creditors (CoC) today met to discuss the bids of these two companies.

Patanjali had revised its bids upwards to about Rs 43 billion, which is around 30 per cent higher than the Adani's offer. Patanjali has also assured the lenders that it would invest extra capital required to revive the company.

Sources said that the CoC is likely to meet on May 30 to consider both the bids and decide on voting.

Haridwar-based Patanjali group had emerged as the front runner with a bid of over Rs 40 billion to acquire Ruchi Soya.

The CoC of the company is meeting tomorrow and may finalise the bids.

Apart from Patanjali and Adani, the other companies which have shown interest in acquiring Ruchi Soya are Wilmar, Emami Agrotech and Godrej Agrovet.

Patanjali Ayurveda already has a tie-up with the Indore-based Ruchi Soya for edible oil refining and packaging.

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

Earlier, Patanjali spokesperson had said that the company has bid for Ruchi Soya as it aims to be a major player in edible oil segment, particularly soybean oil. It also wants to work for farmer's benefit.

In December 2017, Ruchi Soya Industries Ltd entered into the Corporate Insolvency Resolution Process (CIRP) and Shailendra Ajmera was appointed to act as interim resolution Professional (IRP).

The appointment was made by the National Company Law Tribunal (NCLT) on the application of the creditors Standard Chartered Bank and DBS Bank Ltd, under the Insolvency and Bankruptcy Code.

Adani Wilmar sells edible oils under Fortune brand.