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Pristine Logistics & Infraprojects front runner to buy Sical Logistics under IBC

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Shri Vaibhavi Logistics

MUMBAI : Pristine Logistics & Infraprojects Pvt Ltd is leading the race to acquire Sical Logistics Ltd, the bankrupt firm previously owned by the Coffee Day Group.

Private equity firm Global Infrastructure Partners-backed Pristine Logistics is the only sectoral player among the four to file a resolution plan when the deadline ended on Friday, multiple sources said.

Rajnish Kumar, Co-founder and Director at Pristine Logistics confirmed the firm has filed a resolution plan.

“If successful in the bid, we are confident of running the company on a going concern basis,” Kumar said. “We have a business plan for the company and the management bandwidth,” he added.

In March last year, NCLT ordered start of CIRP under the bankruptcy law against Sical Logistics.

Mumbai-listed Sical Logistics owes Rs1,599.50 crore to a clutch of banks and financial institutions such as Bank of Baroda, YES Bank Ltd, RBL Bank Ltd, IDFC Bank Ltd, among others. Of this, the resolution professional has admitted Rs1,574.06 crore.

In 2011, the Coffee Day Group, through its subsidiary Tanglin Retail Realty Developments Pvt Ltd, acquired Sical Logistics from Chennai-based M A Chidambaram Group.

Sical Multimodal and Rail Transport Ltd (SMART), the rail logistics wing of Sical Logistics, holds a Category I license from the Indian Railways, to ply container trains throughout the Indian Railways network in both the export-import and domestic segments.

SMART owns seven rakes of 45 wagons each and some 1,000 containers. It also runs three container freight stations (CFS) at Chennai, Tuticorin, and Visakhapatnam, and is in the process of building two rail-linked inland container depots (ICD) spread over 70 acres of land near Whitefield in Bengaluru and on 80 acres in Chennai.

Sical Logistics also holds 49% stake in PSA-Sical Terminals Ltd, the entity that runs a container terminal at Centre-owned V O Chidambaranar Port Trust. The terminal is majority owned by PSA International Pte Ltd, a unit of Temasek Holdings Pte Ltd, Singapore’s sovereign wealth fund.

The corporate insolvency resolution process of Sical Logistics must be completed by February 6 when the 270-day timeline set by the Insolvency and Bankruptcy Code (IBC).

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