Last Friday, NCLT pronounced an order to admit Vadraj Cement, formerly known as ABG Cement, for corporate insolvency process. Adani Group, UltraTech Cement and JSW Cement may bid to acquire the debt-laden company, lenders said.
The Bombay High Court ordered winding up of the company on August 23, 2018, in a matter pertaining to Beumer Technology versus Vadraj Cement. The high court recalled the winding up order following a plea by JC Flowers Asset Reconstruction Company (ARC) on August 18, 2023. EY-backed Pulkit Gupta was appointed by the NCLT as the interim resolution professional. The tribunal also directed Chandan Kumar, the official liquidator, to hand over possession and custody of all the assets of Vadraj Cement to the IRP and extend cooperation to him.
Vadraj Cement was a subsidiary of ABG Shipyard. Rishi Agarwal promoted AGB Shipyard itself underwent a corporate insolvency process, failed to attract bidders and its assets were eventually sold to Welspun Group and Arcelor Mittal under liquidation.
ABG Shipyard is accused of bank fraud, and investigative agencies alleged that Agarwal diverted bank loans to overseas tax havens. The Enforcement Directorate had attached ₹952 crore worth of assets of Vadraj Cement under the Prevention of Money Laundering Act.
The NCLT order showed that the official liquidator (OL) had objected to admitting the company for debt resolution under the Insolvency and Bankruptcy Code process.
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