Debt-laden Jyoti Structures Ltd, which owes Rs 7,000 crore to its lenders, may opt for liquidation, a financial daily reported.
The Economic Times said the decision comes after three failed attempts to sell the Jyoti Structure’s assets.
The company is currently undergoing bankruptcy proceedings at the National Company Law Tribunal. It is one among the 12 large NPA accounts identified by the Reserve Bank of India for loan resolution under the insolvency and bankruptcy code.
The final plan submitted by the resolution applicant for Jyoti Structures was rejected due to the absence of requisite majority in the e-voting process by the committee of creditors, the resolution professional said in a release.
The resolution plan submitted by a group of ultra-high-net-worth individuals, led by Netmagic founder Sharad Sanghi, had received 66% votes in its favour. The decisions taken by the committee of creditors require the approval of not less than 75% of lenders, according to the report.
One unnamed person told the financial daily that the resolution plan was rejected as the bid value was too low, and almost on a par with the liquidation value. The bidder also did not have prior experience in carrying out engineering, procurement and construction work.
Incorporated in 1974, Jyoti Structures is in the business of power transmission, distribution and substation-related engineering, procurement and construction projects.
Reliance Industries Ltd and JM Financial Asset Reconstruction Company have submitted a joint-bid to acquire debt-laden textile company Alok Industries Ltd in the second round of bidding, ET reported.
Alok Industries is undergoing a corporate insolvency resolution process by the National Company Law Tribunal. It is also one among the 12 large NPA accounts identified by RBI.
The report cited one person saying that JM Financial ARC was the sole bidder in the first round and had made an offer that would result in an 85% haircut to the lenders of Alok Industries, which had a total debt of Rs 29,519 crore.
The resolution professional called for second round of bidding as there was only one bidder in the first round, according to the report.
Horlicks on block
Global food and beverage companies Nestle, Unilever, Danone, PepsiCo, Mondelez and India-based ITC are the likely suitors for GlaxoSmithKline’s consumer healthcare nutrition business including Horlicks, ET reported.
GlaxoSmithKline PLC is initiating a strategic review of Horlicks and its other consumer healthcare nutrition products businesses in order to support its $13 billion deal to buyout Novartis’ 36.5% stake in the consumer healthcare joint venture.
Citing one person, the report said Mumbai-listed GlaxoSmithKline Consumer Healthcare Ltd will lead the talks to sell Horlicks. ITC is a likely contender because malt-based brands could be a natural addition to its expanding food portfolio.
The majority of Horlicks and other nutrition products sales are generated in India. The strategic review will include an assessment of GlaxoSmithKline PLC’s 72.5% shareholding in GlaxoSmithKline Consumer Healthcare Ltd, the parent company said in a release on Tuesday.
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