Ruchi Soya resolution plan expected to be completed today.
In yet another boost for lenders under the Insolvency and Bankruptcy Code (IBC), the INR4,350cr resolution plan for debt-ridden edible oil firm Ruchi Soya is likely to be completed today after Baba Ramdev-led Patanjali Ayurved secured funding from five banks.
The news comes as the world's largest steel-maker ArcelorMittal closes INR42,000cr deal with Essar Steel's lenders today.
Refresh Your Memories: Patanjali had received NCLT's approval to acquire Ruchi Soya in September this year. NCLT had admitted the insolvency plea filed by two lead financial creditors Standard Chartered Bank and DBS Bank. However, later the Singapore-based DBS Bank became a dissenting creditor and approached NCLAT challenging the distribution of proceeds from the bid submitted by Patanjali Ayurveda. Financial Express
Extra Crunch: Shares of diagnostic firms such as Thyrocare, Dr Lal PathLabs and Metropolis Healthcare have slipped about 6.2%, 11.6% and 4.7%, respectively, in the past one week on the back of investor concerns that increased competition due to the entry of Reliance Life Sciences, a deep-pocketed player, into the diagnostics space could disrupt the market, squeeze margins and reduce return on equity.
Should the investors be really worried about Reliance pulling off a Jio in the diagnostics space as well? Read this article for the entire scoop.
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