<article>Global private equity firm<a href="https://www.dealstreetasia.com/?s=KKR" target="_blank" rel="noopener"> KKR&#8217;s</a> non-banking arm has dragged Indian dairy company <a href="https://www.dealstreetasia.com/?s=Kwality Ltd" target="_blank" rel="noopener">Kwality Ltd</a> to the <a href="https://www.dealstreetasia.com/?s=National Company Law Tribunal (NCLT)" target="_blank" rel="noopener">National Company Law Tribunal (NCLT)</a>, as per a BSE filing on Wednesday.</article>

Global private equity firm<a href="https://www.dealstreetasia.com/?s=KKR" target="_blank" rel="noopener"> KKR&#8217;s</a> non-banking arm has dragged Indian dairy company <a href="https://www.dealstreetasia.com/?s=Kwality Ltd" target="_blank" rel="noopener">Kwality Ltd</a> to the <a href="https://www.dealstreetasia.com/?s=National Company Law Tribunal (NCLT)" target="_blank" rel="noopener">National Company Law Tribunal (NCLT)</a>, as per a BSE filing on Wednesday.
&#8220;&#8230;the company has now received today a communique from advocates &amp; solicitors of KKR India Financial Services Pvt Ltd, informing, that a company petition U/S 7 of Insolvency and Bankruptcy Code 2016, is being filed before the Hon&#8217;ble National Company Law Tribunal (NCLT) Delhi. The Company has also received an e-communique from e-filing@nclt.gov.in portal in this regard,&#8221; Kwality said in the filing.
The company, however, added that it had no information on whether the said petition had been admitted by NCLT Delhi or not.
KKR had invested Rs 520 crore through a structured finance transaction in Kwality in July 2016. The company is a processor and producer of various types of dairy products including milk, ghee, butter, milk powder, curd, yogurt and cheese under the brand Dairy Best.
On Monday, The Hindu BusinessLine reported that Kwality is set to be dragged to the NCLT on loan default of over Rs1,200 crore. The company had a debt of about Rs2,000 crore, of which 80 per cent has gone bad following poor business decisions. KKR, which holds about 20 per cent stake in Kwality, is not keen on pumping in any fresh capital into the company, the report added.
The company has also not been faring well on the growth and profitability front. Its revenues grew marginally to Rs6,724 crore in FY18 from Rs6,131 crore a year ago while net profit for FY18 dropped to Rs 71 crore against Rs164 crore a year ago.
Kwality, formerly  Kwality Dairy Ltd, sold its ice-cream brand to Hindustan Unilever in 1994. The company that was set up to supply milk to Kwality Ice Creams India Ltd was acquired by the Dhingra family in 2002.

Kwality reportedly had a debt of about Rs2,000 crore, of which 80 per cent has gone bad following poor business decisions.

India: KKR drags dairy firm Kwality to NCLT over loan default

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India: KKR drags dairy firm Kwality to NCLT over loan default

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