The committee of creditors (CoC) of the debt-ridden Empee Distilleries has unanimously okayed the resolution plan by SNJ Distillers and submitted it to the Chennai bench of the National Company Law Tribunal (NCLT) for approval.
SNJ Distillers, part of the SNJ Group, a south India-based conglomerate, is involved in the manufacturing of Indian made foreign liquor (IMFL). Claimed to be the first company in Tamil Nadu, to introduce the idea of concept-style premium brandy and special state-select liquors, SNJ works closely with international and domestic brands such as Bacardi, Radico Kaithan and Geoscope. The company also established IMFL units in Kerala, Andhra Pradesh and Goa.
Four companies had shown interest in reviving Empee Distilleries, which is currently under corporate insolvency resolution process (CIRP), for having defaulted on the dues to the tune of over Rs 300 crore to a slew of financial creditors.
The RP had called for expression of interest on May 27, and the last date of submission of resolution plans was extended to July 12.
According to RP’s filing with the exchanges, the total amount claimed by financial creditors and operational creditors was over Rs 1,350 crore, including over Rs 335.56 crore from the CoC. The amount admitted from the total claimed amount was around Rs 469.31 crore.
The admitted amount from the financial creditors, out of the claim of Rs 335 crore, was around Rs 302.73 crore, including Rs 148.45 crore from Edelweiss Asset Reconstruction Company, Rs 78.05 crore from Andhra Bank, Rs 54.46 crore from IDBI Trusteeship Services and Rs 11.34 crore from Union Bank of India.
Chennai NCLT, in November 2018, had started the insolvency process after a petition was filed by the Union Bank of India.
Empee Distilleries, one of the popular Indian made foreign spirits manufacturers in Tamil Nadu, had been making losses for the last two financial years. It reported a net loss of Rs 77 crore in FY18 while the net loss was at Rs 51.50 crore in FY17.
The company started its operations in 1983 with the setting up of a manufacturing unit at Mevaloorkuppam on the outskirts of Chennai.
Source: Financial Express, July 30, 2019