After SP Growth Partners (SPGP), an investor in bankrupt apparel brand Reid & Taylor, showed inability to cough up the earnest money deposit (EMD), a new investor CFM Asset Reconstruction Company approached the National Company Law Tribunal (NCLT) to invest in the company.
SPGP director Pankaj Agarwal Tuesday informed the bench of the inability to pay the EMD before filing the resolution plan, and offered to bring in another investor CFM ARC, who would meet the required net worth to make a bid as a consortium. However, the court dismissed the application.
CFM ARC CEO S V Shah appeared as a co-applicant of Hong Kong-based investor SPGP, along with the Employees Welfare Association of RTIL to revive RTIL.
Shah informed the court that CFM ARC has over Rs 100 crore net worth and an asset under management (AUM) worth over Rs 1,200 crore.
The court asked CFM ARC to file a separate application in this regard.
The Mumbai NCLT bench headed by Bhaskara Pantula Mohan and V Nallasenapathy asked Shah to revert within 48 hours, with how much money he can deposit as EMD.
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The court said that CFM ARC is required to deposit at least Rs 5 crore while submitting a resolution plan.
They elaborated that Shah can deposit Rs 2 crore or more as EMD through a demand draft in the name of RTIL to show his seriousness on Thursday and another Rs 3 crore while submitting the resolution plan.
The bench also reprimanded Agarwal and said he painted a "rosy picture of his net worth, wasted the courts time and also misrepresented facts", which amounts to contempt of court, for which he can be tried.
RTIL, owned by the Kasliwal family-run S Kumar Group owes over Rs 4,100 crore to lenders.
The committee of creditors includes Finquest Financial Solution, which is the largest with close to Rs 800 crore of claims, Union Bank of India, Punjab National Bank, IL&FS Financial Services, IDBI Bank and L&T Finance etc, who had voted for liquidation on December 14, 2018.
Edelweiss ARC had taken the company to NCLT in March 2018. Besides, Arcil and JM Financial ARC also have exposure to RTIL.
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