Over 97% of lenders voted in favour of ASG Hospital’s bid for Vasan Health Care, NCLT told

The National Company Law Tribunal (NCLT), Chennai, was informed on Monday that the committee of creditors has voted in favour of a resolution bid submitted by Rajasthan-based ASG Hospital Private Limited for Vasan Health Care Pvt. Ltd. under the insolvency process.

The resolution professional told the tribunal that the lenders had approved the plan in a meeting held on February 8, with 97.9% voting in favour of the bid and sought for approval of the plan. The NCLT has posted the case for further hearing on July 8.

According to sources, ASG Hospital had submitted a bid for ₹550 crore. The other bidders in the fray included MGM Healthcare’s managing director M.K. Rajagopalan in his personal capacity, Dr. Agarwal’s Health Care Ltd. and iLabs India Special Situations Fund.

Mr. Rajagopalan has sought to file a petition against the lenders choosing ASG Hospital’s plan. The NCLT said it wanted to first hear ASG Hospital’s resolution plan in detail and then take up cases relating to any objections.

In 2017, the NCLT had ordered the commencement of insolvency proceedings against Vasan Health Care in a petition filed by Alcon Laboratories (India) Pvt. Ltd., one of its suppliers. This was the first case to be admitted by NCLT, Chennai, under the Insolvency and Bankruptcy Code, 2016. Financial creditors, including Andhra Bank, Edelweiss Asset Reconstruction, Kotak Mahindra Bank and HDFC Bank, have a claim totalling ₹1,268 crore against the company.

Last year, the National Company Law Appellate Tribunal, Chennai, had allowed an appeal filed by the lenders seeking extension of time-frame under the insolvency resolution process. The lenders had appealed against an NCLT order that refused to grant extension of time for the insolvency process and directed for filing for liquidation of the company.

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Printable version | Aug 2, 2022 7:50:30 pm |