Kotak and Karvy propose to acquire distressed Ricoh India

According to a report, Kotak Investment Advisors and Karvy Data Management Services have bid to acquire distressed Ricoh India with almost Rs 3,000 crore in unpaid dues. The bids are submitted to the committee of creditors led by Deutsche Bank, which will choose the new owner of the company.
 

Lenders, excluding related parties Ricoh Japan and Ricoh Asia Pacific, may have to take a 5-10% loss on their loans, the people said. Ricoh India owed the two related parties over Rs 1,500 crore.

Ricoh India is said to be helping India Post in digitization. The case was admitted for insolvency proceedings last year after the company filed a petition upon being unable to repay its debt.

Krishna Chamadia was appointed the resolution professional, who is responsible for the distressed company’s daily operations during the insolvency proceedings. Besides Deutsche Bank, the other lenders are Bank of India and Citibank. Minority shareholders of Ricoh India claimed compensation from the insolvent company and its Japanese parent for losses caused by a drastic fall in its share price following the fraud allegations.

About 165 public shareholders owning a combined stake of 2.3% petitioned the National Company Law Tribunal’s Mumbai chapter seeking relief, citing Ricoh India’s mismanagement as a key reason. The company’s shares have been suspended from trading on the stock exchanges. The capital market regulator had issued an interim order asking for a forensic audit of Ricoh India’s books.