Adani Wilmar Ltd. won creditors’ approval to take over insolvent Ruchi Soya Ltd., India’s largest edible oil maker. Lenders of Ruchi Soya have approved the Rs 6,000 crore bid of Adani Wimar to acquire the debt-ridden edible oil firm
At the end of a 24-hour voting process, more than 96 percent members of the committee of creditors for Ruchi Soya approved the resolution plan submitted by the Adani Group Company.
Creditors representing at least 66 percent of the outstanding dues of a company must approve a plan for it to go through under the Insolvency and Bankruptcy Code.
The bid involved Rs 4,300-crore repayment to financial creditors and over Rs 1,700 crore equity infusion in the company. Patanjali Ayurveda Ltd., the second-highest bidder, had offered Rs 4,065 crore to financial creditors and about Rs 1,700 crore worth of equity.
Adani Group beat Patanjali under the Swiss auction mechanism where neither bidder offered to hike their previous bids, the bankers quoted earlier said. The offer will now be placed before the National Company Law Tribunal for a final nod, after which Adani Wilmar can take control of Ruchi Soya’s assets.