Insolvency process: What makes debt-ridden Ruchi Soya a prized asset

In the last few weeks, the fight for Ruchi Soya, admitted to the Corporate Insolvency Resolution Process by lenders, has got aggressive. In the spotlight are Baba-Ramdev-cofounded Patanjali Ayurved and Adani Wilmar, part of the Adani group, who are fighting tooth and nail for the Indore-based firm. The action comes after the two players were recently declared H1 (Adani Wilmar) and H2 (Patanjali) bidders for Ruchi Soya in a meeting by the Committee of Creditors. Adani Wilmar, which markets the Fortune brand of edible oils, had submitted a bid of Rs 54.74 billion for Ruchi Soya, of which Rs 43 billion would be paid to lenders. It would also make an equity infusion of Rs 17 billion in the company. Patanjali, meanwhile, had offered to pay Rs 57.65 billion, of which the lenders would get only Rs 40.65 billion. chart While Patanjali was asked to submit a revised bid under the Swiss Challenge system last week to match or better Adani Wilmar’s offer, it opted to seek clarifications on the bid process instead. Clearly, no one appears to be ceding ground yet in the battle for the debt-ridden firm, where financial creditors have filed claims worth around Rs 104 billion and operational creditors have filed claims worth Rs 360 million.