SNJ Distilleries Private Limited is set to take over Empee Distilleries Ltd after its ₹475-crore resolution plan was approved by a Division Bench of the National Company Law Tribunal (NCLT), Chennai.
The Bench admitted insolvency proceedings against Empee Distilleries on November 1, 2018 in a case filed by Union Bank of India.
In the first round of expression of interest, two companies — SNJ Distilleries and Mondovi Distilleries and Breweries Private Limited — were the bidders. The committee of lenders asked to increase the plan value. However, it did not come through. As a result, a second expression of interest was called where the lenders found the resolution plan values of SNJ Distilleries and Kals Distilleries Limited higher than others. Later, the committee of lenders unanimously selected SNJ Distilleries.
As per the plan, SNJ will pay ₹302 crore to settle the dues of financial creditors in four phases and also pay VAT dues of ₹126.77 crore. The financial creditors claimed about ₹335 crore, while the amount admitted was ₹302.73 crore. The admitted claims of financial creditors were ₹148.45 crore from Edelweiss Asset Reconstruction Company (unsecured financial creditor), ₹78.05 crore from Andhra Bank, ₹54.46 crore from IDBI Trusteeship Services and ₹11.34 crore from the Union Bank of India, according to the information provided to stock exchanges. Further, it will pay workmen of Empee their dues. Its request for delisting of Empee has been approved.
The committee of lenders had rejected a settlement plan offered by Shaji Purushothaman, director of Empee Distilleries. NCLT also rejected the plea by Mr. Purushothaman against the lenders.
