Ruchi Soya faces insolvency

Ruchi Soya is facing insolvency proceedings at the National Company Law Tribunal. The edible-oil maker reported to stock exchanges on Friday that Standard Chartered Bank and DBS Bank have filed applications to initiate CIRP (Corporate Insolvency Resolution Process) under the Insolvency and Bankruptcy Code against Ruchi Soya Industries before the NCLT’s Mumbai Bench. According to the company’s FY-17 annual report, its total borrowings stood at ₹12,232 crore, nearly 12 times the equity. The company is on the list of defaulters the RBI has asked banks to take through to the newly set up debt-resolution process.On Friday, Ruchi Soya shares fell 0.23 per cent on the BSE to ₹21.9 apiece.