Kwality Insolvency: Lenders To Vote On Deadline Extension For Submitting Bids For Resolution
Lenders of debt-ridden dairy firm Kwality Ltd. on Monday decided to vote on extending the May 15 deadline for submitting the resolution plan by interested bidders, including Haldiram and a Kotak group firm, sources said.
The lenders would also vote on seeking extension of insolvency proceedings by 90 days, they said.
As many as five companies -- Haldiram, Kotak fund, LVP Foods, Aion and TPG Capital -- have expressed interest to bid for acquiring Kwality.
Kwality is currently undergoing the Corporate Insolvency Resolution Process as per the provisions of the Insolvency and Bankruptcy Code, pursuant to an order of the NCLT, New Delhi, dated Dec. 11, 2018. Global private equity player KKR had filed insolvency plea against Kwality.
Shailendra Ajmera, from Ernst and Young, has been appointed as the resolution professional to conduct the insolvency proceedings.
Sources said that a committee of creditors met on Monday to discuss the issue of extension of CIRP by 90 days and also to consider extending more time for submitting resolution plans.
Financial creditors have made a claim of Rs 1,900 crore, they added.
In 2016, Kwality Ltd. had announced that it had raised Rs 300 crore from KKR India Financial Services and got additional commitment of Rs 220 crore. The amount was raised to fund its expansion plans and enter into consumer segment.
The company is engaged in the business of milk processing and manufacturing of dairy products including ghee, milk powders, lassi, buttermilk, flavoured milk etc. It owns two milk processing units, one in Softa, Haryana, and another in Dibai, Uttar Pradesh.