BSR creditors approve US-based Tri-County’s resolution proposal

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Sundaresh Bhat , Partner and Leader
Business Restructuring Services
Deal Advisory Services
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17 November 2018

Florida-based Tri-County’s plan involves paying ₹67 crore to lenders

Bhilai Scan and Research Pvt. Ltd (BSR) Diagnostics Ltd is set to change hands, with the debt-laden company’s bankruptcy resolution professional approaching the National Company Law Tribunal (NCLT) on Thursday to seek approval for a resolution plan submitted by US-based Tri-County Hearing Services.

The resolution plan was cleared by the Chhattisgarh-based firm’s Committee of Creditors (CoC) on 5 November. Florida-based Tri-County’s plan involves paying around ₹67 crore to lenders, and infusing fresh equity into the company.

Axis Bank had approached the Mumbai bench of NCLT to recover its dues from the Bhilai–based firm, which operates around 19 diagnostic centres across central India. The company owes around ₹170 crore to financial and operational creditors. It has five financial creditors, including State Bank of India and Axis Bank that are part of CoC, which has approved the resolution plan with 99% voting in favour.

“The resolution plan was approved by the creditors on November 5 and the plan has provision for operational creditors as well as employees of the company as well,” said Zal Andhyarujina, counsel for the bidder. “Out of total debt, the secured debt is around ₹106 crore and total loan default was around ₹140 crore.”

Sundaresh Bhat, partner and leader of resolution process advisory at consultancy BDO is resolution professional of BSR Diagnostics.

“The company is very much a going concern and all the centres are working. Currently, the company needs a capital infusion of around Rs. 13.5 crore for further modernization which the bidder is willing to do and then the company will revive,” Bhat told the tribunal. “When we took over the company, it had mere Rs. 2 lakh in its accounts but now it has around Rs. 76 lakh due to our efforts,” he added.

The NCLT presided by V.P. Singh and Ravikumar Duraisamy sought more details from the RP about the resolution applicant’s financials and details on reviving the company. The tribunal will hear the matter again on Friday.

BSR operates about 19 diagnostics centres in central and eastern India such as Bhilai, Raipur, Nagpur, Jagdalpur and Cuttack. Earlier, it had plans to raise money to expand further in the region. It also owns two hospitals: Apollo BSR Hospitals and BSR Cancer Hospital in Bhilai.

Law firm Link Legal India Law Services is advising the RP in the case while company’s promoters Rohit Khanduja and M.K. Khanduja are being represented by Ashish Pyasi, an advocate with Dhir & Dhir Associates.

Source: https://www.livemint.com/Companies/fdzM5kdoY0P7ntDVjOuzJP/BSR-creditors-approve-USbased-TriCountys-resolution-propo.html