The Committee of Creditors (CoC) of Ruchi Soya, in its meeting held today, opened the bids submitted by the two contenders -- Patanjali group and Adani Wilmar, which sells cooking oil under the Fortune brand.
The CoC has decided to conduct Swiss challenge method to maximise the asset value of Ruchi Soya.
When contacted, Haridwar-based Patanjali spokesperson did not disclose the bid value.
However, he raised question over the neutrality of the process citing the media reports of resignation of law firm Cyril Amarchand Mangaldas as advisor of Adani Wilmar. The law firm is also advising the Ruchi Soya's resolution professional.
"We are surprised and sought details from CoC. We have written letter on the issue of resignation of Cyril Amarchand Mangaldas," said Patanjali spokesperson S K Tijarawala.
Sources said lenders who have to recover about Rs 120 billion in outstanding loans from Ruchi Soya, were not happy with the initial bids, where in Patanjali was the top bidder with an offer of around Rs 43 billion followed by Adani at Rs 33 billion.
Under the Swiss Challenge method, Adani will get another chance to make an offer if Patanjali were to match or better its offer of about Rs 60 billion.
Apart from Patanjali and Adani, companies that had shown interest in acquiring Ruchi Soya were Emami Agrotech and Godrej Agrovet.
Patanjali Ayurveda already has a tie-up with the Indore-based Ruchi Soya for edible oil refining and packaging and it wants to further expand into cooking oil business.
Ruchi Soya, which is 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.
In December 2017, Ruchi Soya Industries Ltd entered into the Corporate Insolvency Resolution Process (CIRP) and Shailendra Ajmera was appointed 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.
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