Closure with a Cause: Birla Cotsyn Wraps Up Liquidation, Creditors Rejoice

In a major development, Birla Cotsyn (India) Ltd. has finally settled with the appointed liquidator, ending a long-drawn exercise of liquidation and insolvency. The erstwhile textiles behemoth is at the final stage of distribution to creditors, as announced by the liquidator and confirmed by regulatory filings.

 

Key Highlights:

Final Settlement Implemented: The company has made the final payment to the liquidator under the approved Scheme of Compromise and Arrangement approved by the National Company Law Tribunal (NCLT).

 

Distribution to Creditors Underway: With regulatory compliance now established, the process of distribution to pay out proceeds to creditors is underway in earnest, closing books for banks, financial institutions, and other entities after decades of uncertainty.

 

Regulatory Clearances Received: NCLT Mumbai Bench sanctioned the revival and settlement scheme, as well as all the statutory disclosures under SEBI LODR, a significant regulatory milestone.

 

Revival Proposals: The revival plan sanctioned involved acquirers such as Mr. Nikhil Jain, Rohstoffe International Private Limited, and Wendt Finance Private Limited, which opens the doors to a possible revival of a few assets or operations.

 

Closure to Stakeholders: The payment marks a milestone for secured and unsecured creditors alike, who have been eagerly waiting in anticipation of closure since the company's liquidation order in 2019.

 

Compliance and Transparency: Each settlement and distribution process is being carried out in line with applicable Companies Act rules and Insolvency and Bankruptcy Code regulations.

 

This shutdown is a welcome milestone, freeing the creditors and paving the way for a clean start of the company assets with new management.

 

Source: Business Standard, Valueresearchonline, Economic Times