Chennai: For a change, the makers of Mansion House brandy Tilaknagar Industries Ltd are on a high as its subsidiary Prag Distillery Pvt Ltd is now out of the National Company Law Tribunal (NCLT).
The NCLT has also allowed reinstatement of the Board of Directors of Prag Distillery for management of operations.
Prag Distillery is situated in Andhra Pradesh and has a bottling capacity of approximately six lakhs cases per annum, said Tilaknagar Industries in a statement.
Tilaknagar Industries said it had previously entered into an agreement with Standard Chartered Bank, the financial creditor of Prag Distillery, to settle all outstanding dues of the entity.
As per the agreement, an amount of $2,250,000 was paid to Standard Chartered Bank by Tilaknagar Industries on behalf of Prag Distillery, the statement notes.
“Tilaknagar Industries had also entered into a settlement agreement with the only other financial creditor of Prag Distillery, DCB Bank Ltd., and settled their dues in full. In addition, the company paid an amount of approximately Rs 14 crore to settle, in full, all the operational creditors of Prag Distillery whereas only three of them had filed their claims before the Liquidator,” Tilaknagar Industries said.
As per the statement,Tilaknagar Industries has also settled all the dues owed to the employees of Prag Distillery.
As a result, Prag Distillery will continue to provide gainful employment to approximately 100 employees.
In furtherance to its settlement, Standard Chartered Bank approached the liquidator for withdrawing the application filed against Prag Distillery which was approved by stakeholders with 100 per cent votes.
Pursuant to the same, the liquidator filed an application at NCLT for withdrawal of Prag Distillery from liquidation.
In exercise of its discretionary power, the NCLT pronounced the order stating that Prag Distillery is out of liquidation and paved the way for reinstatement of the company’s Board of Directors, the statement said.
(IANS)
