Winsome Yarns Limited has informed the Exchange about Corporate Insolvency Resolution Process
WINSOME · price
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The National Company Law Tribunal (NCLT), Chandigarh Bench has approved the Resolution Plan submitted by Mohini Health and Hygiene Limited for Winsome Yarns Limited. The company had entered Corporate Insolvency Resolution Process (CIRP) on December 22, 2023, after Edelweiss Asset Reconstruction Company filed the petition. The Committee of Creditors, with total admitted claims of Rs. 1,894.69 crore (dominated by Edelweiss with 83.27% voting share), had approved the resolution plan by Mohini Health with 100% voting. The total resolution plan value is Rs. 162.90 crore, which includes CIRP costs of Rs. 2.50 crore, Rs. 137 crore to secured financial creditors, Rs. 30 lakh to workmen/employees, Rs. 10 lakh statutory dues, and Rs. 50 lakh to other operational creditors. Mohini Health will infuse Rs. 20 crore for overhaulment and working capital. Existing shareholders will be diluted from 100% to 5% public shareholding, with Mohini Health acquiring 95% stake.
This is a positive development for creditors as they recover part of their dues through the resolution process. However, existing shareholders face severe dilution as the new acquirer takes 95% control. The stock may see movement given the change in ownership and business direction from textile/yarn to potential healthcare products manufacturing.