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Murli Industries gets many suitors

Edelweiss ARC has got a time-limit extension beyond the mandatory 90 days deadline

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In what could be seen as among the early successes of the new Insolvency and Bankruptcy Code, disgraced cement and paper maker Murli Industries may finally get a new life with Edelweiss Asset Reconstruction expected to come up with firm offers from interested parties, sources told DNA Money.

Edelweiss ARC, which has now taken over a substantial part of the loan, has recently got a time-limit extension for insolvency resolution beyond the mandatory 90 days deadline to come up with non-binding offers.

Though closed for some time, Nagpur-based Murli's cement plant at Chandrapur in Maharashtra has reportedly received interest from industry biggies like Ambuja Cements, Shree Cement, Dalmia Bharat and Sagar Cements while its paper-mill asset is also being eyed keenly.

Bank of Baroda, the lead bank under consortium arrangement had earlier issued a notice to Murli under the SARFAESI Act for recovery of Rs 1,365.40 crores due to the consortium banks.

The bank also had taken symbolic possession of the property owned by Murli. Apart from Bank of Baroda, the consortium had Punjab National Bank, IDBI, Axis Bank and erstwhile State Bank of India subsidiaries and others, among which banks like Allahabad Bank, with outstanding amount of Rs 52.46 crore as part of the consortium, had sold their outstanding to Edelweiss.

Trouble for Nagpur-based Murli Industries started seven years back in 2011 when institutional lender IFCI went to Debt Recovery Tribunal (DRT) over Rs 35.56 crores of unpaid dues but IFCI later amended its original application raising the recoverable dues to Rs 105 crore.

After Maloo family's 30% holding, IFCI has the second biggest holding of 27.66% as per the last disclosed shareholding pattern by the company.

DRT subsequently put several restrictions on the promoters and the Maloo family including preventing directors from leaving the country and barring the company from selling any assets.

Earlier this year, lenders dragged Murli to NCLT over Rs 1,365 crores of unpaid loans following which Deloitte was appointed as the insolvency professional.

LEASE OF LIFE

  • Edelweiss ARC has got a time-limit extension beyond the mandatory 90 days deadline
     
  • Murli’s cement plant received interest from Ambuja Cements, Shree Cement, Dalmia Bharat and Sagar Cements
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