National Company Law Tribunal Directs Lenders Of Kwality To Consider Haldiram Snacks' Revised Offer Of Rs 145 Crore

The Delhi-based bench of the National Company Law Tribunal (NCLT) has directed lenders of Kwality Ltd to reconsider the enhanced Rs 145-crore offer by Haldiram Snacks to acquire the debt-ridden dairy firm.

It has also extended the Corporate Insolvency Resolution period by another three weeks.

Earlier, Kwality Ltd’s lenders had rejected the Rs 142 crore bid of Delhi-based Haldiram Snacks which emerged as the sole bidder to acquire the debt-ridden dairy firm.

Later, Haldiram revised its offer marginally and approached the NCLT with a plea that its latest resolution plan should be considered by Kwality’s lenders because its offer is higher than the liquidation value.

It may be recalled that in 2018, the NCLT had ordered insolvency proceedings for Kwality based on a petition filed by global private equity firm KKR. Shailendra Ajmera, who is part of multinational consultancy firm EY, has been appointed as the resolution professional to conduct the insolvency proceedings.

On November 2, Kwality’s Committee of Creditors had rejected Haldiram Snacks' Rs 142 crore resolution plan since only about 40% of lenders had voted in favor of the resolution plan as against a requirement of 66% of lenders. Kwality has a total debt of around Rs 1,900 crore.