The bankruptcy court of Chennai has approved a resolution plan by Pristine Malwa Logistics Park for Sical Logistics Ltd, the bankrupt subsidiary of Coffee Day Enterprises.
Pristine Malwa proposed a ₹521-crore resolution plan, which includes payment to lenders, employees, and cash in the company. The offer equates to 30% recovery for verified creditors.
While Agrigo Trading and Amby Minding were in the fray, 77.5% of lenders voted for Pristine’s plan. Last week, Chennai NCLT’s two-member bench comprising Sameer Kakar and Ramalingam Sudhakar approved the plan. The winning bidder offered ₹470 crore staggered payment to secured lenders, which includes ₹94 crore as upfront payment and the remaining to be paid in two years. They have allocated ₹6.75 crore for employees. The offer also includes ₹41 crore cash in the company.
According to the order, the winning bidder proposed to infuse ₹518 crore in Sical.
The order stated all liabilities of Sical Logistics in its capacity as a shareholder of its subsidiaries, joint ventures and associate companies, investee companies and entities where it is a shareholder, including PSA Sical Terminals Ltd and Sical Mining Ltd stand extinguished. Sical Logistics has six wholly-owned subsidiaries and eight associate companies in the mining and logistics business.
After the demise of the promoter VG Siddhartha in July 2019, the company faced a liquidity crunch due to its inability to execute projects it won. As a result, some of the projects won by Sical were put on hold. “Bankers continued to withhold collections from operations towards debt servicing obligations, including certain obligations falling due in the future,” SLL said in November 2019.
Tanglin Retail Realty Developments Pvt Ltd, a part of Coffee Day Group, acquired a 55% equity stake in SLL from Chennai-based MA Chidambaram Group in 2011.
Sical is in the business of mining, multi-modal logistics for bulk and containerised cargo port terminals, port handling, trucking, and warehousing, ship agency, customhouse agency, offshore supply-logistics and retail logistics.
The liquidation value of the corporate debtor was Rs 352 crore, and the fair value was Rs 504.4 crore. Sical Logistics Ltd had received 26 expressions of interest, although only four entities submitted firm resolution plans. Of these four plans, only three were compliant. Financial creditors have admitted claims of Rs 1561 crore.
Pristine Malva, the group company of Pristine Logistics and Infraprojects, operates rail logistics business. The parent company is backed by Global Infrastructure Partners India, which has inland container depot and private freight terminal operations across India.
