Rolta India Creditors Permit All Suitors To Submit Fresh Bids

Rolta India Ltd.’s Resolution Professional Mamta Binani said the committee of creditors allowed all the resolution applicants to submit fresh bids for the bankrupt IT company.

The development comes after the National Company Law Tribunal (NCLT) permitted the creditors to consider the resolution plan of Patanjali Ayurved Ltd., whose bid came after the lenders announced the successful bidder, Binani said in a stock exchange announcement on 16 February.

The bankruptcy court on 12 February allowed the creditors to consider the resolution plan of Baba Ramdev-led Patanjali Ayurved, subject to condition that fresh opportunity be allowed to revise the bid to all the resolution applicants, according to the NCLT’s order.

The tribunal also directed Binani to file appropriate application to seek further extension of time for the company’s corporate insolvency resolution process (CIRP) period after she sought more time following Patanjali Ayurved’s bid.

In the stock exchange announcement, Binani said the creditors allowed all the resolution applicants to revise their bids and submit their respective legally compliant resolution plans. She didn’t disclose the timeframe.

Previously, local media reported that Patanjali Ayurved offered to acquire Rolta for around 830 crore Indian rupees ($100 million) in cash, just days after lenders declared Pune-based developer Ashdan Properties highest bidder for the company.

The Mumbai-based firm earlier received nine resolution plans from suitors in the fresh bidding process. Rolta’s committee of creditors had rejected the sole resolution offer from the suitor in the earlier bidding process.

The company’s is undergoing CIRP after the Mumbai bench of the NCLT admitted a petition filed by its financial creditor Union Bank of India on 19 January 2023, alleging a default of 1,413.47 crore rupees.

Rolta’s financial creditors include Bank of Baroda, Bank of India and Canara Bank.

Note: $1 = 83.0158 Indian rupees

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