Indian Gas Ltd. has entered the fray to acquire Reid & Taylor through the insolvency resolution process. The NCLT’s Mumbai bench on Thursday entertained the company’s bid for the debt-ridden textile company after CFM Assets Reconstruction Pvt. Ltd. suddenly expressed its willingness to withdraw from the race.
The court has asked Indian Gas, which is registered in Chennai, to pay a non-refundable amount of ₹2 crore on February 5. The bench of judges Bhaskar Pantulu Mohan and V. Nallasenapathy also ordered the new bidder to appear before the NCLAT on Friday to explain its bonafides and interest in investing in Reid & Taylor’s resolution process.
Recently, Finquest Financial Solutions, the largest investor in Reid & Taylor, had moved the NCLAT to challenge the Mumbai NCLT's order that had allowed CFM Asset Reconstruction to participate in the resolution process though the statutory 270 days period was over. The appellate authority has issued notices to all parties and posted the matter for hearing on Friday.
The NCLT has also asked Indian Gas to prove its networth of over ₹50 crore on February 5 when the matter is scheduled for hearing. Earlier, Indian Gas had claimed in the court that its networth was ₹1,500 crore.
Finquest opposed the participation of Indian Gas in the resolution process stating that the time of the statutory 270 days period should not be extended under any circumstances. The Bench noted it was entertaining Indian Gas’ claim after hearing more than 50% of Reid & Taylor’s creditors.
