Kirloskar Electric Company Ltd faces insolvency proceedings
Kirloskar Electric Company Limited (the Company) has informed the exchanges announced that it has been served with an application by Laburnum Chemicals Private Limited (Laburnum) seeking to initiate Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The application was filed on November 24, 2023, before the National Company Law Tribunal, Bengaluru.
Laburnum is seeking to recover an alleged debt of Rs 9.95 crore with interest till March 31, 2023, together with short interest for the prior period and further interest till the actual date of payment from the Company. The Company has disputed the alleged claim and the matter is pending before the Additional City Civil and Sessions Court, Bangalore.
The Additional City Civil and Sessions Judge has directed that the matter be listed on December 15, 2023, for further proceedings.
The Company will take all necessary steps to defend itself against the CIRP application and protect the interests of its stakeholders.
Kirloskar Electric Company Limited is a leading manufacturer of electrical equipment in India. The Company has a long and distinguished history of innovation and excellence. Kirloskar Electric products are used in a wide variety of applications, including power generation, transmission, and distribution, as well as in industrial and infrastructure projects.
Kirloskar Electric produces more than 70 products under 8 different product groups, catering to core sectors of the economy like power generation, transmission and distribution, transportation, and renewable energy, sugar, steel, cement, and allied industries.
The company posted a total revenue of Rs 478 crore and a net profit of Rs 31 crore in FY23.
The company had total debt of Rs 117 crore as on 30 September 2023. The amounts outstanding and due from the subsidiaries as at September 30, 2023 in respect of the transfer of the assets as mentioned above, other expenses incurred by the subsidiaries reimbursed by the Company and interest charged totally amounts to Rs 2,113 crore after considering Ind AS adjustments. As on date, the majority of the immovable properties in these subsidiaries have been disposed off and the debts including the interest thereon have been paid. All the Banks (Financial liabilities) in these subsidiaries have been paid off.
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