MUMBAI: A dedicated bankruptcy court has accepted the resolution plan submitted by a consortium led by investor Kalpraj Dharamshi and Rekha Jhunjhunwala, wife of ace investor Rakesh Jhunjhunwala, for the revival of Ricoh India, the largest player in printing and document solutions.
The local subsidiary of the Japanese firm had filed voluntary insolvency last year. It had drawn bids from Kotak Investment Advisors Ltd, Bengaluru-based WeP Solutions and Karvy Data Management Systems.
Late Thursday, the Mumbai bench of the National Company Law Tribunal (NCLT) uploaded its order where the tribunal had approved the resolution plan submitted by the consortium led by Dharamshi and Jhunjhunwala. The company was admitted for insolvency resolution in January 2018.
“The resolution plan is binding on the corporate debtor (Ricoh India) and other stakeholders so that revival of the company shall come into force with immediate effect and the ‘moratorium’ imposed…shall cease to have any effect henceforth,” said a bench of MK Shrawat and Chandra Bhan Singh, passing the order.
The company owes about Rs. 2,519 crore to its financial and operational creditors. Under the resolution plan the successful bidder intends to infuse about Rs. 50 crore as optional and conditional payment. The plan intends to clear all dues of workmen and employees of the company. Currently, the Japanese parent company owns around 73% in the company as per exchange filing.
The revival plan proposes the delisting of the company and provides that in case the public shareholders wish to exit Ricoh India, the successful bidder shall offer an exit price of Rs. 50 crore to the public shareholders. Assuming all public shareholders accept this offer, the consortium of Dharamshi and Jhunjunwala shall be paying Rs. 52.49 crore to the public shareholders.