Bids invited for Dharani Sugars under IBC

Chennai: The Resolution Professional (RP) appointed by the National Company Law Tribunal (NCLT) has called for expressions of interest from bidders to take over Dharani Sugars and Chemicals.

The public announcement by the RP has sought financial creditors to submit their claims before August 12 and the estimated closure of the insolvency process is January 24, 2022. The process has been initiated by Bank of India. “Our total debt is around Rs 575 crore. We arrived at a one time settlement package and paid the first instalment of Rs 26 crore as part of the package. With Covid lockdown and other issues, our processes and cash flows to settle the dues have been delayed. We will now work with the lenders and arrive at a resolution plan. The broad contours will be on the lines of the OTS,” said Palani G Periasamy, chairman of Dharani Sugars. He said he would also submit a plan under Section 12 A and bring the sugar company out of the crisis. “Four years of drought, between 2015 and 2019, has resulted in a distress situation for the sugar industry. Just as we were coming out of the drought Covid pandemic hit us badly,” he said. Dharani has a combined cane crushing capacity of 10000 tonnes a day across three factories in Vasudevanallur, Polur and Kallakurichi. “We have fully integrated sugar complexes with cogeneration as well as an industrial alcohol facility. For the last year, we could crush cane only in one of the three factories,” he added.


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