Home-grown snack maker Haldiram has emerged as the sole bidder for acquiring loss-making Kwality Dairy with a bid worth Rs 130 crore after global private equity giant KKR & Co. dragged the company to bankruptcy court, a report in PTI stated, citing sources in the know. The lenders are likely to vote on Haldiram's bid later this month, the news agency quoted sources as saying.
KKR had reportedly filed insolvency plea before the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code last October after the Delhi-based dairy firm had defaulted on the loan. Shailendra Ajmera, who is part of consultancy firm Ernst & Young, has been appointed as resolution professional to conduct the insolvency proceedings, pursuant to an order of the NCLT, New Delhi, dated December 11, 2018. In 2016, Kwality had raised Rs 520 crore from KKR India Financial Services through a structured finance transaction.
The amount was raised to fund its expansion plans and enter into consumer segment. Sources told PTI that a committee of creditors (CoC) met on Wednesday to take stock of the resolution process and discuss the valuation report. The CoC will vote on the resolution plan in the third week of October. Kwality, engaged in the business of milk processing and manufacturing of dairy products, including ghee, milk powders, lassi, chaach and flavoured milk, has a total debt of around Rs 1,900 crore, as per the report.
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