New Delhi: Debt-ridden dairy firm Kwality on Thursday said the NCLT has given 90 days extension till September 7 to the company for completion of the corporate insolvency resolution process (CIRP).
Kwality is currently undergoing the CIRP as per the provisions of the Insolvency and Bankruptcy (IBC) Code, pursuant to an order of the National Company Law Tribunal (NCLT), New Delhi, dated December 11, 2018. Global private equity player KKR had filed insolvency plea against Kwality.
"NCLT, after considering the Progress Report on resolution process by the resolution profession, has extended CIRP time period by 90 days i.e. up to September 7, 2019 in respect of the company in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016," the company said in a regulatory filing.
Shailendra Ajmera, who is from multinational consultancy firm EY, has been appointed as the resolution professional to conduct the insolvency proceedings.
In 2016, Kwality Ltd had announced that it had raised Rs 300 crore from KKR India Financial Services and got additional commitment of Rs 220 crore. The amount was raised to fund its expansion plans and enter into consumer segment.
The company is engaged in the business of milk processing and manufacturing of dairy products, including ghee, milk powders, lassi, chaach, flavoured milk etc. It owns two milk processing units, one in Softa, Haryana, and another in Dibai, Uttar Pradesh.