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A new investor has evinced interest in joining the fray to bid for debt-ridden RTIL — formerly Reid & Taylor (India) Ltd — while one withdrew from the resolution process.
On Thursday, New Delhi-based Indian Gas informed the National Company Law Tribunal’s Mumbai bench of its decision to bid for the beleaguered company, while Gujarat-based CFM Asset Reconstruction (CFM ARC) withdrew from the race.
Stating that it has a networth of ₹1,500 crore, Indian Gas staked a claim in the entire resolution process.
Permitting the New Delhi company to bid for Reid & Taylor, the tribunal asked it to pay a non-refundable amount of ₹2 crore by February 5 and prove its net worth by that date. The matter comes up for hearing at NCLT on February 5.
The judges Bhaskar Pantulu Mohan and V Nallasenapathy also directed the new bidder to appear before the National Company Law Appellate Tribunal (NCLAT) tomorrow and explain its bonafides and interest.
India Gas was permitted to take part in the resolution process following the exit of CFM ARC. The tribunal also ordered that the deposit amount of ₹2 crore be refunded to CFM ARC.
The case will be heard at NCLAT tomorrow (February 1).
Finquest Financial Solutions — the largest investor in debt-ridden RTIL — opposed India Gas’ request to put in a bid stating that the statutory 270-day period should not be extended under any circumstances. The company was represented by counsel Zal Andhyarujina, who alleged that Indian Gas’ intentions were not genuine.
The counsel said that the company’s balance sheet as obtained from Registrar of Companies showed its networth as “just ₹6 crore”.
Financial Solutions earlier this week challenged NCLT’s January 15 order, which had directed the Resolution Professional (RP) to entertain the CFM ARC claim and permit it to submit a resolution plan to restructure the company.
Finquest Financial also challenged another NCLT order wherein the tribunal said that RTIL’s petition will be given an extension.
Earlier in January, UK-based Boustead Plc stated it was interested in bidding for RTIL, while NCLT dismissed the application of Hong Kong-based investor SPGP Holdings.
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