Andhra Cements : CIRP - Commencement

ANDHRA CEMENTS LIMITED

Ref. ACL.SEC:2022

28"' April, 2022

To,

Subject :Intimation I'cgarding tht! commencement of COl'ponlte insolvencv resolution process of Andhra Cements Limited and appointment of the Interim Resolution ProfessiOllal bv NCLT under tb e Insolvencv and Bankruptcv Codc, 2016.

Dear Si r I Madam.

,

'". - This is to inform you that pursuant to an application fi led by Pridhvi Asset Reconstruction and

Securitisation Company Limited before the Han'ble National Company Law Tribunal. Amaravati Bench (" NCLT" ) against Andhra Cements Limited (,'Corporate DebtOl-"f'Company ") un d er Section 7 o f the Insolvency and Bankrup tcy Code. 2016 read with the rules and regulations thereunder ("Code"), NCLT has by virtue of the order dated Apri l 26, 2022 ("'O rder") in CP No. 3717/AMRJ2022 commenced the Corporate Insolvency Resolution Process (" C1RP" ) for the Corporate Debtor as per the provisions of the Code. A copy of the said Order has been received 011 April 26. 2022 and enclosed for your infonnarion and records.

• 2. By the said Order dated April 26. 2022, Mr. Nirav K Pujara (lBBUI PA-001 / IP - P-OI450/2018- 19/12285) has been appointed as an Interim Resolution Professional ("lRP") under the provisions of the Code.

• 3. The Company is now under CIRP as per the provisions of the Code. As per Section 17 of the Code, the powers of the Board of Directors of the Company stand suspended and as sueh the powers shall be vested with and exercised by the IRP.

• 4. It may further be noted that. pursuant to the Order passed by the NCLT dated Ap ril 26, 2022. a moratorium has bee n declared under Section 14 of the Code.

  Yours sincerely,

  Than king you.

Yours truly,

For ANDHRA CEMENTS LTD . : . ~

G,TI~iRAO

COMPANY SECRETARY Enclosed: Copy of the Order.

~YPEE

Regd . Office & Factory: Durga Cement Works, Durgapuram, Srinagar (PO), DachepaUi - 522414, Guntur District, Andhra Pradesh .

Ph : +91 - 8649-257441 /42 , Fax : +91 - 8649-257428,

----0 R 0 U P ---

Website:www.andhracements.com. E-mail: investorcell@andhracements.com CIN : L26942AP1936PLC002379

1

NATIONAL COMPANY LAW TRIBUNAL

AMARAVATI BENCH

(Video Conference)

PRESENT: JUSTICE TELAPROLU RAJANI - MEMBER JUDICIAL ATTENDANCE-CUM-ORDER SHEET OF THE HEARING HELD ON 26.04.2022 AT 10.30 AM

Counsel for Petitioner(s):

Counsel for Respondent(s):

ORDER

CP NO.37171AMRl2022 is admitted, vide separate orders.

/]~~

JUSTICE TELAPROLU RAJANI

MEMBER JUDICIAL

NATIONAL COMPANY LAW TRIBUNAL AMARAVATI BENCH AT HYDERABAD *** *** ***

CP (IB) No. 37/7/AMRl2022

In the matter of a Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 Read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016

In the matter of

Mis. ANDHRA CEMENTS LIMITED

Between:

Mis. Pridhvi Asset Reconstruction and Securitisation Company Limited, Rep. by Mr.K.V.Ramakrishna Prasad- Trustee,

Having its registered office at D.No.I-55, Raja Praasadamu, 4th Floor, Wing-I,

Plot No.6, 6A, 6B, Masjid Banda Road, Kondapur, Hyderabad - 500084, Telangana.

... Financial Creditor

AND

Mis. Andhra Cements Limited, Having its registered office at Sri Durga Cement Works, Sri Durgapuram, Guntur, Andhra Pradesh - 522414.

... Corporate Debtor

Date of Order: 26.04.2022

CORAM:

Justice Telaprolu Rajani, Member Judicial.

Appearance:

For Financial Creditor For Corporate DebtorMr.P.Vikram, Advocate. Ms.Naveeni Jain, Advocate.

ORDER

• 1. This Company Petition IS filed by Mis. Pridhvi Asset Reconstruction and Securitisation Company Limited ("hereinafter referred to as Financial Creditor") seeking for initiation of Corporate Insolvency Resolution Process (CIRP) against Mis.

  Andhra Cements Limited ("hereinafter referred to as Corporate Debtor").

• 2. The facts stated in the Petition are briefly as follows:

The Corporate Debtor is engaged in the business of manufacturing of Cement and had for the purpose of its business, approached several Banks including IDFC First Bank Limited, HDFC Limited and Karur Vysya Bank Limited for various credit facilities and amounts were disbursed as a creditor during the period from 2012 to 2016. Subsequently, Edelweiss Asset Reconstruction Company Limited acting in its capacity as Trustee of EARC Trust SC - 244 & 247 had vide Assignments Agreements dated 22.03.2017 and 31.03.2021, acquired the loans and underlying security interest, including all rights, title and interest therein, held by the original lenders, being IDFC First Bank Limited and HDFC Limited. Thereafter, the Financial Creditor acquired loans to an extent of Rs.804,72,79,2101- and underlying security interest including all rights, title and interest therein held by Edelweiss Asset Reconstruction Company Limited and Karur Vysya BankLimited. The Corporate Debtor failed to abide by its repayment obligations. Hence, this application seeking to initiate CIRP against the Corporate Debtor.

• 3. The Corporate Debtor filed counter putting forth all the problems encountered by him in running the Company. It is stated that the Plant is capable of producing 26 MW of power and requires 9500 tons of indigenous coal for 20 days operation/month and running of CPP will save cost of power of DCW to the extent of 1.12 Crore per month. It is further submitted that due to inadequate working capital facility, the Corporate Debtor has not been able to operate the plant at about 60% capacity utilization and is in requirement of working capital. It is stated that only for the reasons mentioned therein the Corporate Debtor Company had requested the Financial Creditor for additional support, to recommence the operations of cement plants by providing working capital assistance and that the Corporate Debtor all along cooperated with the lenders for undertaking Expression of Interest (EoI) process as well as Assignment process. It is submitted that the Corporate Debtor Company has not wilfully defaulted the amounts.

• 4. Hence, from the contents of the counter it is clear that there is an admission of debt and also the default. The reasons put forth for not being able to discharge the debt, unfortunately cannot be considered within the frame work of IBC. What Section 9 requires is only default on the part of the Corporate Debtor, for initiating CIRP. At

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