NCLT approves Nuvoco Vistas' INR 18 bln resolution plan for Vadraj Cement
This story was originally published at 17:33 IST on 4 April 2025
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NEW DELHI - The Mumbai bench of the National Company Law Tribunal has approved Nuvoco Vistas Corp. Ltd.'s INR 18 billion resolution plan for debt-ridden Vadraj Cement Ltd. The tribunal said that the resolution plan met the requirements of Section 30(2) of the Insolvency and Bankruptcy Code, 2016 and Regulations 37, 38, 38 (1A) and 39 (4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
According to the plan, Vadraj Cement shall be wholly owned by the implementing entity Vanya Corp. Pvt. Ltd. and the latter shall directly or indirectly infuse the balance resolution amount reduced by the assignment amount into the debt-ridden company either in the form of equity or quasi-equity or debt or debt instruments. Thereafter, Vanya Corp. shall merge into Vadraj Cement, as per the terms provided in the scheme of the merger that forms an integral part of the resolution plan. Vanya Corp. is a wholly owned subsidiary of Nuvoco Vistas.
In 2024, the tribunal had admitted a petition by Oriental Bank of Commerce, now Punjab National Bank, to start insolvency proceedings against Vadraj Cement. In January, the committee of creditors of the debt-ridden company approved Nuvoco Vistas Corp.'s resolution plan for Vadraj Cement with 100% favourable votes.
On Friday, the shares of Nuvoco Vistas Corp. ended 0.9% lower at INR 316.35 on the National Stock Exchange. The shares of Punjab National Bank ended 2.4% lower at INR 96.61. End
Reported by Surya Tripathi
Edited by Vandana Hingorani
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