Banking News

NCLAT stays bankruptcy proceedings against Ind-Swift


Mumbai: The National Company Law Appellate Tribunal (NCLAT) granted a stay on initiating bankruptcy proceedings against Ind-Swift Ltd, an affiliate company of Ind-Swift Laboratories, which is selling a part of its pharma business to the Piramal-Bain-backed India Resurgent Fund for ₹1,650 crore, shows a court document.

Ind-Swift was admitted for corporate insolvency on September 12 on a petition by trader creditor Allcare Containers claiming overdues of ₹3.12 crore, according to an order passed by the Chandigarh National Company Law Tribunal (NCLT). Last week, the NCLAT stayed the insolvency process till October 30 after the company said that it had settled the principal dues of Allcare but needed time to negotiate the terms of interest payment.

Ind-Swift has a 16% stake in Ind-Swift Laboratories, which is selling its active pharmaceutical ingredients and contract research and manufacturing services businesses to the India RF-linked entity, first reported by ET on July 21.

The company officially announced the deal on September 6, stating that its board had approved a proposal to sell these two businesses to Synthimed Labs, a portfolio company of the India RF for ₹1,650 crore. The sale will help Ind-Swift Labs retire high-cost debt.
The Ind-Swift group is also working on a restructuring plan. This includes a proposal by Ind-Swift to raise ₹600 crore in unsecured inter-corporate deposits from Ind-Swift Lab, whose proceeds would be used to retire debt, said people aware of the development. The plan also involves a merger of Ind-Swift with Ind-Swift Lab, subject to shareholders’ approval.


Source link