Another extension of the last date for submission of EoI for Birla Tyres
The last date for submission of Expression of Interest (EoI) for Birla Tyres could be extended till 27 March 2023, the company said in an exchange filing. The extension of the last date of EoI was discussed in the 10th meeting of the Committee of Creditors (CoC) on 20 March 2023.
Earlier, the last date of submission of EoI was 20th February 2023.
Birla Tyres, a part of the famous BK Birla Group of Companies and Kesoram Industries Ltd, has been dragged to the insolvency court by SRF Ltd for defaulting on a payment of Rs 15.84 crore.
Out of the Rs 15.84 crore total dues, Rs 10.06 crore is the principal amount and the rest Rs 5.78 crore is interest at an annual rate of 24%. The amount due is related to supplies made in 2018-19.
The company owes Rs 2,191 crore to different creditors including Rs 1,128 crore to financial creditors. The Committee of Creditors, which comprises financial creditors, has 12 members with Axis Bank having the highest (49.25%) vote share. Axis Bank has admitted claims of Rs 555 crore. Asset Reconstruction Company (India) Ltd has second highest vote share (17.39%) with admitted claims of Rs 196 crore.
Birla Tyres, a listed entity, was established in 1991 as part of Kesoram Industries Limited, initially collaborating in the production and development of its tyres with world-class tyre manufacturer Pirelli. Birla Tyres demerged from Kesoram Industries Ltd vide NCLT Order dated 08 November 2019, under scheme of arrangement and listing of shares effective from 01 January 2019. It got listed on Bombay Stock Exchange and National Stock Exchange with effect from 10 February 2020.
The Company has incurred losses during the previous periods/years and has continued to incur losses during the current year, primarily due to lower sales volume and finance costs which have resulted in erosion in net worth as at 31 March 2022.
Birla Tyres reported losses to the tune of Rs 655 crore in 2021-22, up from Rs 284 crore in 2020-21. Its revenue also fell from Rs 163 crore in 2020-21 to Rs 22 crore in 2021-22.
The total debt of the company including interest accrued as at 31 March 2022 amounts to Rs. 1,138 crore.
Also See: Birla Tyres in insolvency court after failing to pay Rs 16 crore to vendor SRF Ltd
