The National Company Law Tribunal (NCLT) approved Prag Distillery’s plea to move out liquidation process and reinstated the board of directors for management of operations.

A subsidiary of Indian-Made Foreign Liquor manufacturer Tilaknagar Industries, Prag Distillery has a bottling capacity of about 6 lakh cases per annum in Andhra Pradesh.

Dues cleared

Tilaknagar Industries, maker of Mansion House brandy, had previously entered into an agreement with Standard Chartered Bank, the financial creditor of Prag Distillery, and paid the entire outstanding dues of $2.25 million.

Tilaknagar Industries had also entered into a settlement agreement with the only other financial creditor of Prag Distillery, DCB Bank, and settled about ₹14 crore dues. In all, the operational creditors of Prag Distillery, only three of them, had filed their claims before the liquidator.

Tilaknagar Industries has also settled all the dues owed to the employees of Prag Distillery. As a result, Prag Distillery will continue to provide gainful employment to about 100 employees.

In furtherance to its settlement, Standard Chartered Bank approached the liquidator for withdrawing the application filed against Prag Distillery which was approved by stakeholders with 100 per cent votes. Pursuant to the same, the liquidator filed an application at NCLT for withdrawal of Prag Distillery from liquidation.

In exercise of its discretionary power, the NCLT pronounced the order stating that Prag Distillery is out of liquidation and paved the way for reinstatement of the company’s board of directors.