The Committee of Creditors (CoC) has approved the resolution bid of over ₹500 crore by Rajasthan-based ASG Hospital for the Chennai-based Vasan Health Care Pvt. Ltd. This plan will now be placed before the National Company Law Tribunal (NCLT), Chennai, for approval, said sources privy to the development.
Dr. Agarwals Healthcare Ltd and Max Vision Eye Hospitals Private Ltd had also bid in the insolvency process.
In November 2021, The National Company Law Appellate Tribunal (NCLAT), Chennai, allowed an appeal filed by CoC of Vasan Health Care for seeking extension of time-frame under the insolvency resolution process. Both the CoC and the Resolution Professional had filed the appeal as the deadline had been exceeded.
One of the resolution applicants – Maxvision – has also filed an intervention application demanding preference since it had submitted the bid within the time-frame fixed by the NCLAT. However, other resolution applicants (Agarwal and one other) filed applications to resist the prayer in the intervention.
In 2017, NCLT Chennai ordered insolvency proceedings to be commenced against Vasan Healthcare based on a petition filed by one of its suppliers – Alcon Laboratories (India) Pvt Ltd. As on September 30, 2021, the healthcare chain’s 29 claimants had a total outstanding of ₹1,749 crore, says information on the company’s website.
Last year, the NCLT said that Vasan Health Care resolution process cannot be started afresh from the stage of issuance of Expression of Interest as it would upset the timeline prescribed under the Insolvency and Bankruptcy Code, 2016.
The NCLT had granted an extension only till August 22 to finalise the accounts of Vasan Health Care after which, it said, the resolution professional could file a liquidation application. Justice M Venugopal, Acting Chairperson, and Kanthi Narahari, Member (Technical) said after completion of hearing of both sides, the ‘judgment is reserved.’ The Hindu BusinessLine