Ruchi Soya creditors may opt for open bidding in bankruptcy auction: report
25 May 2018
With at least two bidders — the Baba Ramdev-led Patanjali Ayurved and Adani Group — submitting bids of around Rs10,000 crore each that equal the total debt of Ruchi Soya, the committee of creditors of the debt-laden company may go for open bidding to arrive at a better resolution plan, say reports.
Besides Patanjali and Adani Wilmar, other bidders for the Indore-based edible oil refiner include ITC, Emami Agrotech and Godrej Agrovet.
Patanjali Ayurveda already has a tie-up with Ruchi Soya for edible oil refining and packaging.
ITC, Godrej Agrovet and Emami Agrotech also confirmed that they have put in bids for Ruchi Soya but did not disclose the value.
Ruchi Soya, which is facing insolvency proceedings, has a debt of about Rs12,000 crore.
The company, which has several manufacturing plants and market edible oil brands such as Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold, has attracted bids for up to 51 per cent stake, according to reports.
Alternatively, lenders may also opt to take a stake in the company and a final call will be taken by the committee of creditors, which is expected to meet soon.
The entire process of finalising a bidder, with or without an open bidding process, will be finalised within the next 7-10 days, reports citing sources close to the development said.
While the bankruptcy proceedings of Ruchi Soya have to be completed by 21 June, the CoC has to find the maximun value to minimise the haircut of secured lenders.
The Insolvency Resolution Professional (IRP) has, meanwhile, asked Adani, which had earlier submitted a conditional bid that offered a certain amount in cash and the remainder in equity, to submit a final figure, according to the report.
EY is the IRP in the Ruchi Soya insolvency case, while BDO India is the advisor to the CoC.
Both Adani and Patanjali have readied thei own war chests to fund the deal, if selected.
Ruchi Soya is the largest edible oilseed extraction and refining company in India, with a 3.72 mtpa capacity. It is also the largest player in the cooking oil and soya foods category in the country.