Mangalore Chemicals & Fertilizers Limited has informed the Exchange regarding 'Notice of meeting of the Unsecured Creditors of Mangalore Chemicals & FertilizersLimited pursuant to the directions of the Hon ble National Company Law Tribunal,Bengaluru Bench, vide its order dated 01st May 2025'.
Awaiting price reaction for this filing.
Mangalore Chemicals & Fertilizers Limited (MCFL) has informed the stock exchanges about a meeting of its unsecured creditors scheduled for 16th June 2025 at 3:00 PM via video conferencing, as directed by the NCLT Bengaluru Bench on 1st May 2025. The purpose is to seek creditor approval for the proposed composite scheme of arrangement under which MCFL will merge into Paradeep Phosphates Limited (PPL). Under the scheme, MCFL shareholders will receive equity shares in PPL based on a share exchange ratio determined by independent valuers. The merger aims to create one of India's largest private-sector fertilizer companies, combining MCFL's strong southern India presence with PPL's eastern, northern, and western operations. BSE and NSE have already issued observation letters in February 2025, and the Competition Commission of India approved the deal on 30th July 2024. The resolution will be deemed passed if creditors representing three-fourths in value vote in favour.
This is a routine but important procedural step toward completing the MCFL-PPL merger. Investors should watch the 16th June 2025 creditor meeting outcome, as approval by three-fourths in value of unsecured creditors is required before the scheme moves to final NCLT sanction. Successful creditor approval would be a positive milestone, potentially supporting the stock; any rejection could delay or derail the merger.