News

Business

Morarjee Textiles: EOI Issued For Corporate Insolvency Resolution Process

• By  Textile Excellence
• May 04, 2024

Following the order by the National Company Law Tribunal, Mumbai Bench (NCLT) dated February 09, 2024, to commence Corporate Insolvency Resolution Process (“CIRP”) in respect of Morarjee Textiles Ltd., Ravi Sethia, was appointed as the Interim Resolution Professional (IRP). In accordance with Section 23 of the IBC, the powers of the board of directors of MTL are suspended and such powers are vested with the RP. Morarjee Textiles has been a leading vertically integrated producer of premium cotton shirting fabrics and the high street fashion printed fabrics. The mill boast of a high profile list of clientele that includes domestic and international brands across 44 countries. Off late, Morarjee Textiles has faced financial troubles and now going through insolvency resolution process.

RP has issued invitation for Expression of Interest (EOI) to submit a resolution plan(s) for the corporate debtor from eligible prospective resolution applicants (RA).

Eligibility Criteria

The eligibility criteria for a prospective RA to submit the EOI with the RP are mentioned below:

1. For Body Corporates/Firms/ Government Organizations /Trusts/ Individuals:

a. Minimum consolidated net worth of Rs 25 crore at group level for immediately preceding completed financial years.

b. Evidence to showcase that the Resolution Applicant has experience in manufacturing sector, especially textile sector, either domestic or global, during any of the immediately three preceding financial years.

2. For Financial Institutions/ Private Equity Funds/Asset Reconstruction Companies1/ Non‐Banking Finance Companies/ Other financial investors:

a. Minimum assets under management of Rs 25 crore for the immediately preceding completed financial year or committed funds available for deployment/investment of at least Rs 25 crore as on immediately preceding financial year or any later date or a book of loans/ debt assets of at least Rs 25 crore for the immediately preceding completed financial year; and

b. Evidence to showcase that the Resolution Applicant has preferably current/previous investment or extended any loans/advances in manufacturing companies especially in textile sector or companies operating in the same sector, either domestic or global.

The interested parties can submit the EOI in sealed envelope on or before 11:00 PM of 22nd May 2024 through email at morarjeecirp@gmail.com. Or can mail the application through speed/registered post or by hand delivery. The envelope should be labelled as “EOI for Morarjee Textiles Limited” in the name of “Ravi Sethia” - Interim Resolution Professional for Morarjee Textiles Limited” at

KPMG Restructuring Services LLP,

8th Floor, Building No.10,

DLF Cyber City,

Phase II, Gurgaon, Haryana – 122002

National Company Law Tribunal, Mumbai Bench (NCLT) to commence Corporate Insolvency Resolution Process (“CIRP”) in respect of Morarjee Textiles Ltd., Ravi Sethia, was appointed as the Interim Resolution Professional (IRP)