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GMM Pfaudler to buy assets of firm via liquidation process
Photo Credit: VCCircle

GMM Pfaudler, the Indian unit of US-based Pfaudler Inc, will likely pick up its first asset under the liquidation process giving the creditors a haircut of 75%. 

GMM will acquire HDO Technologies, the wholly owned subsidiary of engineering, procurement and construction firm Hindustan Dorr-Oliver, for a cash consideration of Rs 58.5 crore, according to a disclosure. 

As part of the purchase, it will get a facility spread over 11.9 acres with seven manufacturing bays (builtup area of 23,617 square metres) located in Vatva, Ahmedabad. 

“It is equipped to manufacture a wide range of heavy engineering equipment..,” a filing stated. 

The firm expects to complete the transaction by April 30, 2021. 

GMM is a supplier of process equipment to pharmaceutical and chemical industries.  

Last month, it completed a transaction to acquire a majority stake in parent Pfaudler Group from German private equity firm Deutsche Beteiligungs AG Fund VI.  

Over the years, GMM has diversified its product portfolio to include mixing systems, filtration & drying equipment, engineered systems and heavy engineering equipment. 

Incorporated in 2006, HDO Technologies is a 100% subsidiary of Hindustan Dorr Oliver which is controlled by Hyderabad-based listed and fraud-hit IVRCL. 

IVRCL, which owed more than Rs 14,000 crore to financial and other creditors, became the first firm under liquidation to be sold as a going concern.  

HDO Technologies owed a total of Rs 230.78 crore to Bank of India (BOI) and Andhra Bank and another Rs 5 crore towards its operational creditors, as on December 2017. 

Its parent Hindustan Dorr-Oliver, which is also under bankruptcy, owes a total of over Rs 3,570 crore to financial creditors including ICICI Bank, Corporation Bank, Andhra Bank, Standard Chartered and Exim Bank. Dues to operational creditors stood at around Rs 135 crore. 

As on March 2017, the accumulated losses of HDO Technologies amounting to Rs 221 crore exceeded its net worth. 

In April 2017, it was admitted to bankruptcy proceedings after being dragged by state-owned Bank of India (BoI). 

In January 2018, the BoI-led committee of creditors (CoC) rejected a joint resolution plan by a consortium of Pennar Industries and Eight Finance for both the parent and subsidiary company. 

More than a year later, the National Company Law Tribunal (NCLT) ordered for liquidation of both the companies. 

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