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R. Balaji

Still has legal hurdles in the way

Chennai , April 1

Shree Ambika Sugars, an associate company of Thiru Arooran Sugars, has emerged the highest bidder for Arunachalam Sugar's mill, which is on the block as part of debt recovery proceedings, according to sources in the know.

However, for now, this is only a technicality as the issue is caught up in a legal imbroglio.

Indian Renewable Energy Development Agency Ltd had invoked the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 to invite bids for Arunachalam Sugar for loan recovery.

But the company has challenged the process, which is now being heard in the Debt Recovery Tribunal.

Bidders

There are two bidders for the mill - Shree Ambika Sugars and Rajshree Sugars.

Shree Ambika's bid was Rs 135.5 crore and Rajshree Sugars was Rs 131.4 crore, according to sources familiar with the proceedings.

Arunachalam Sugar mill's unit in Tiruvannamalai has a capacity to crush about 2,500 tonnes sugarcane a day and comes with a 19-MW capacity cogeneration plant. The reserve price was fixed at Rs 96 crore.

Shree Ambika Sugars Ltd is an integrated sugar company with a capacity to crush 9,000 tonnes sugarcane a day and a cogeneration power capacity of 56 MW.

More Stories on : Mergers & Acquisitions | Non-Performing Assets | Sugar

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