Apparel company Provogue is being acquired by Rajkot-based investment firm Plutus Investments and Holding Private Limited for under Rs.100 crore, according to an order delivered by the national company law tribunal (NCLT).
The company is being acquired as a going concern after NCLT ordered its liquidation way back in October 2019.
Protracted litigation resulted in delays in the final outcome of its insolvency proceedings.
At the pre-liquidation stage, the company had received resolution plans from Donear and a consortium involving its former promoters, Nikhil Chaturvedi and Salil Chaturvedi.
However, the company’s creditors rejected both resolution plans forcing it into liquidation.
The company’s financial creditors are Andhra Bank, Bank of India, Central Bank of India, Indusind Bank and Punjab National Bank.
Provogue went into insolvency in 2018 with a debt burden of over Rs. 300 crore that it was unable to service.
The creditors chose Amit Gupta as the company’s resolution professional. He was subsequently chosen to continue in the role of the company’s liquidator. Gupta was advised by law firm Chandhiok & Mahajan’s, Pooja Mahajan. Plutus Investments and Holding Private Limited was advised by a team from law firm AZB & Partners comprising senior partners Hardeep Sachdeva, Priyamvada Shenoy and Ravi Bhasin.
Plutus Investments and Holding Private Limited’s parent firm Plutus Wealth is based in London.