Amar Remedies files for bankruptcy petition

Mumbai: Amar Remedies, a Mumbai-based company, which is manufacturing personal healthcare products is heading for liquidation as the company has filed a bankruptcy petition. The move comes at a time when the Reserve Bank of India is identifying mega defaulters to initiate bankruptcy proceedings against them, the company itself has gone ahead to initiate the proceedings.

Under the Insolvency and Bankruptcy Code, the National Company Law Tribunal (Mumbai Bench) has admitted the petition appointing Delhi-based Jayashree Shukla Dasgupta as an interim resolution professional.

Economic Times reports that the company had defaulted loans of Rs 464 crore from lenders. While Bank of India lent Rs 4,93,72,342 through their Mumbai mid-corporate branch, Saraswat Co-op Bank had extended a credit line of Rs 87,64,90,270.

Lenders, including Bank of India, have already served legal or recall notices to reclaim the defaulted sum to the borrower.

“On reading the petition and the supporting documents annexed with the petition, this Bench is of the view that the corporate debtor has committed a default,” said N Nallasenapathy, member (technical) and BSV Prakash Kumar, member (judicial), while admitting the petition.

The Bench stated that “the debt due to various financial institutions to the extent of Rs 463.99 crore as disclosed in the petition is in default.”Sanction letters has been issued to the borrower by various financial institutions sanctioning facilities in favour of the company.

The company has an authorized capital of Rs 28 crore and paid-up share capital of Rs 26.16 crore

Shares of the company have now been suspended for trading at the Bombay Stock Exchange.

The company had already applied to the Board for Industrial and Financial Reconstruction (BIFR), a government organisation dedicated to determine the level of sickness of industrial companies and assist them with a viable revival plan.