JK Paper’s proposal to acquire Sirpur Paper Mills approved by NCLT

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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.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

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