UK’s Boustead Bids For Debt-Ridden India-Based RTIL

UK firm Boustead Plc has become the second company which expressed its interest in bidding for debt-ridden Reid & Taylor (India) Ltd (RTIL) after SPGP Holdings (Hong Kong) Ltd expressed its interest to purchase the company.

Earlier, Boustead had communicated the Interim Resolution Professional (IRP) of its interest to bid bankrupt company. The IRP informed the matter to the Mumbai bench of the National Company Law Tribunal (NCLT).

The British investor was on its way to file a resolution plan after the end of the holiday period, Indian business daily The Hindu Business Line reported citing the sources familiar with the development.

The NCLT had asked the IRP to remain in contact with the new investor and exchange necessary information as under the insolvency and bankruptcy code (IBC). This is if the investor satisfies eligibility criteria.

The IRP on Thursday (10) informed the NCLT that the British investor’s interest was conditional as it was interested in the plant and machinery of the India-based company. Further, the firm aims to transfer the operations to Sri Lanka and not aimed to provide a complete resolution plan as required under the IBC.

IRP informed the tribunal that it obtained necessary documents from SPGP Holdings on January 10. The NCLT has scheduled January 14 as the next date for the hearing.

The list of banks to RTIL include Finquest Financial Solution, Union Bank of India, Punjab National Bank, IL&FS Financial Services, IDBI Bank and L&T Finance.

Edelweiss Asset Reconstruction Company had moved to NCLT against RTIL, with the tribunal accepting the case under IBC, last year.

RTIL, a superior clothing firm that sells under the international brand ‘Reid & Taylor’ in India. It is struggling to repay its Rs 38billion. The firm still runs a factory in Southern Indian city, Mysuru with about 30-40 per cent production capacity.