Dr. Agarwal Health Care Limited has evinced interest in buying Vasan Health Care Pvt Ltd, the National Company Law Tribunal (NCLT), Chennai was informed, while seeking extension of time for the insolvency resolution process.
In 2017, the NCLT had ordered commencement of insolvency proceedings against Vasan Healthcare, in a petition filed by Alcon Laboratories (India) Pvt Ltd, one of its suppliers.
Later the proceedings were stayed by a single judge of the Madras High Court. Nearly two years later, in October 2019, the Division Bench had vacated the stay and the case is back at NCLT.
V. Mahesh, the insolvency resolution process appointee to oversee the proceedings, had filed a petition to extend the time frame for the insolvency process which came to an end on December 28, 2020.
He pointed out that Vasan Healthcare had branches in all the southern States - Karnataka, Telangana, Andhra Pradesh, Puducherry and Tamil Nadu.
However, for the interested parties to submit their bids (resolution plan) they need to travel to these States to make assessments of the assets and health facilities of Vasan Healthcare. This was not possible due to the lockdown imposed by respective state governments to control the COVID-19 pandemic, the petition pointed out.
NCLT granted time till May 31, 2021 to find a suitable resolution for Vasan Health Care. If a resolution is not found by that date, the tribunal said it would be constrained to proceed as per the provisions of the insolvency and bankruptcy code and pass an order for liquidation.
Financial creditors including Andhra Bank, Edelweiss Asset Reconstruction, Kotak Mahindra Bank, HDFC Bank among others have a claim totalling ₹1,268 crore against the company.
