Inox Wind dispute against NCLAT' insolvency order to be resolved today

Last Updated: Mon, Jul 17, 2017 15:15 hrs
Inox Wind

Inox Wind, is protesting against an insolvency order with the Chandigarh bench of the national law appellate tribunal (NCLAT).

The case involves, Jeena & Co, an operational creditor, who moved the tribunal for non-payment of dues valued at Rs. 57 lakh. The creditor, a custom clearance service provider had not been paid for clearance of import shipments from Nhawa Sheva Port in Mumbai.

Inox, according to various sources, and by its own admission had been willing to clear off payments, although the NCLT had initially onboarded a professional to oversee the dispute.

The tribunal finally passed an order on July 5, clearing the decks for insolvency of India's third largest wind turbine manufacturer.

The official spokesperson was quoted in reports as saying that the company remains in good financial health, in spite of the tribunal' verdict.

Post the July 5 verdict, the company claims to have resolved the dispute with its creditor, and is looking at getting the proceedings quashed. A hearing to this regards had been fixed with the NCLAT on July 17 2017.

An official communication from the company secretary Deepak Banga with the Bombay Stock Exchange mentions that the company remained in good finanical health and has been rated positively by credit rating agencies.

Its average reveneus for the last three financial years, based on audited accounts, were Rs. 3525 crores, its earnings before interest, depreceiation and taxes Rs. 627 crores and its net profit Rs. 354 crores. It has a net worth, as of 31 March 2017, of Rs 2190 crores and the company has a cash balance (including liquid investments), as of that date, of Rs. 749 crores.

"The company has been regular in servicing all its commitments to lenders, and has a lon term rating of AA- and a short term rating of A1+ from CRISIL, India's leading rating agency," read the letter.

The news report has done little impact on the scrip's performance. The scrip had been trading in a range of 140-150 from 24th June to July 9. Even during intra-day trading on BSE, the news of the insolvency had little to no impact on its stock value. The stock opened to a high of Rs. 156.95 at 9:19 during the pre-morning session.

The 52 week high and low of the scrip have been of Rs.237.40 on July 18 2016 and Rs. 113.75 on June 6 2017 respectively.

The exchange sought information if the company withheld any information or was to launch any announcement, given its price and volume behavior. Inox replied in the negative, adding that it complied with SEBI provisions and did not withheld any information, through its letter dated July 15.

The company had won contracts to develop a 1050 MW wind plant in a first of its kind tariff-based reverse auction. The auction saw tariffs touch a low of Rs. 3.46 per unit.

The NCLAT is expected to announce its verdict today, July 17 2017.

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