HYDERABAD: Empee Sugars and Chemicals has withdrawn the insolvency petition it filed before the National Company Law Tribunal's ( NCLT ) Hyderabad bench after its main lenders agreed to assign their outstanding loans to leading stressed loans buyer Edelweiss Assets Reconstruction Company.Empee Sugars and Chemicals earlier this month submitted before the NCLT that its secured lenders, including Bank of India and Indian Overseas Bank, have assigned all their outstanding loans in favour of Edelweiss ARC, making the latter the lone secured financial creditor.ET reviewed a copy of the submission made on October 12. Outstanding debt that Empee Sugars and Chemicals defaulted as of July end amount Rs 762.94 crore. Its other lenders and operational creditors include Andhra Bank Oriental Bank of Commerce , Punjab National Bank, Union Bank of India, Sugar Development Fund, Pahorpur Cooling Towers, RR Thulasi Builders and Isgec Heavy Engineering In its submission to NCLT, Empee Sugars and Chemicals said it would restructure the dues of unsecured creditors with the approval of Edelweiss ARCRs. The company said it plans to revive sugar production at Naidupet unit of Andhra Pradesh and power generation at Ambasamudram unit of Tamil Nadu.An NCLT bench comprising Ravikumar Duraisamy and Rajeswara Rao Vittanala disposed Empee Sugars and Chemicals' insolvency petition as withdrawn after observing that none of the counsels appearing for both secured and unsecured lenders opposed it.The sugar producer with a registered office at Naidupet and two sugar plants, in Andhra Pradesh and Tamil Nadu, had claimed heavy losses while moving the tribunal on August 24, 2017.Empee Sugars and Chemicals had recorded losses of Rs 289.98 crore in 2014-15.

Source: Economic Times October 25, 2017 04:52 UTC