The military-focused software developer was admitted to bankruptcy proceedings in January this year after it escaped insolvency thrice in the last four years.
The resolution professional, Mamta Binani, received 12 expressions of interest (EoI) which included eight companies, one Singapore-based fund house and three individuals, the people said.
Sherisha Technologies Private Ltd, which recently acquired a 22.7% stake in Anil Jain’s Refex Industries, has also submitted an expression of Interest. Oaktree Capital-backed Singapore-based fund – FPI Opportunities XII Investment Pte Ltd and Mauritius-based Silver Stallion Ltd also gave separate EoIs.
The other corporates to submit EoIs were Rashmi Metaliks Ltd and Rohstoffe International Pvt Ltd.
The three individuals who gave EoIs are Bhumireddy Gari Mohan Reddy, Amrit Kumar Agarwal and Anuj Goyal.
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The people said the biggest attraction is the real estate on its books. A majority of it is in the form of offices in Mumbai, six flats in Mumbai, and an office each in Kolkata and Vadodara.Kamal Singh promoted Rolta India first defaulted in 2016 on its foreign currency loans provided by Indian banks. Six of Rolta’s overseas subsidiaries too are facing separate bankruptcy proceedings.
The lenders are separately evaluating a Rs 600 crore offer from government-owned National Asset Reconstruction Company Ltd for Rolta India which has admitted financial creditors’ claims of Rs 7,086 crore.
Rolta, in May 2019, evaded bankruptcy by seeking six-month forbearance stating that it is amidst a Rs 5500 crore deal to sell Rolta BI & Big Data Analytics to Steamcast group. It informed lenders that the proceeds from the sale would be used to settle their debt. But when the deal failed, lenders once again initiated insolvency proceedings against the company.
In 2019, the National Company Law Tribunal (NCLT) dismissed the Union Bank of India’s 2018 application on the grounds that it was filed under the Reserve Bank of India’s February 12 circular, which was pronounced as ‘ultra virus’ by the Supreme Court.
Subsequently, in November 2019, the tribunal admitted an application by overseas bondholders under Section 7 of the Insolvency and Bankruptcy Code. However, the Bombay High Court cancelled the admission stating that due procedures were not followed.
In May 2021, the tribunal admitted the company for insolvency proceedings based on an application filed by trade creditors under Section 9 of IBC. The trade creditors were former employees of the company seeking arrears.
Rolta entered into a settlement with the employees after the company was admitted for insolvency but before the committee of creditors was formed. As per the settlement terms, the company would make payment only on approval of the withdrawal of their application by the tribunal. Interestingly, NCLT rejected the withdrawal of the trade creditors in the interest of the creditors.
But surprisingly, the Supreme Court overturned the NCLT’s order. The apex court was of the view that a settlement between the corporate debtor and the trade creditor prior to the constitution of CoC was a justifiable ground to permit withdrawal under section 12A. The section gives the tribunal power to withdraw a company from insolvency proceedings.
