Sirpur Paper Mills located at Kaghaznagar in Adilabad district of Telangana. The National Company Law Tribunal on Thursday approved the proposal put forth by JK Paper to take over the bankrupt Sirpur Paper Mills. The Sirpur Paper Mills is an integrated paper and pulp mill which commenced operations in 1938 under the Nizam’s rule. The company is under the corporate insolvency resolution process as per the provisions of the Insolvency and Bankruptcy Code, 2016.
The approval came from NCLT’s Hyderabad bench in 50 days since the insolvency proceedings for Sirpur Paper Mills began. On 29 May 2018, JK Papers had submitted a resolution plan of nearly Rs. 600 crores for Sirpur Papers before the NCLT. It had approached the NCLT after Sirpur’s financial creditors approved the plan on 16 May 2018 by a majority 80.66% voting share.
Shardul Amarchand Mangaldas advised JK Paper on all aspects of the insolvency resolution process. He also advised them on the drafting of the resolution plan, competition law and representation before the NCLT. JK Papers is one of the largest producers of various kinds of papers and packaging boards. The International Finance Corporation, an investment arm of the World Bank had said that it would invest up to US$ 50 million (Rs 335 crores) in JK Papers last year.