BILT emerges from insolvency with new promoter, and a revival plan

Ballarpur Industries Limited (BILT), one of India’s oldest paper manufacturers which emerged from a three-year long corporate insolvency resolution plan, is set for a turn around. The new management under Finquest Financial Solutions Private Limited has demonstrated its commitment to turning around the company through substantial capital infusion.

According to the annual report of the company, FFSPL, the new holding company, has provided short-term loans of ₹78 crore for capital expenditure and working capital. Additionally, Rs 20 crore was raised through the issuance of unlisted NCDs to the holding company and a director. BILT has already invested ₹83 crore in capital work in progress, aimed at restarting manufacturing operations. The company has further committed ₹39 crore towards outstanding capital contracts.

In the immediate aftermath of the takeover, the company liquidated old finished goods inventory and scrap, generating total revenue of ₹18.61 crores to generate initial cash flows. Recruitment has been undertaken for key senior positions, and the company currently employs 88 permanent staff.

The new board has stated that its primary focus is on swiftly resolving legacy issues and revitalizing operations, leveraging core strengths while exploring new opportunities in the evolving paper industry. The company has prepared its financial statements on a going concern basis, reflecting management’s confidence in the revival strategy.

Financial performance for FY2024-25

Despite the restructuring, the company continues to face financial challenges, reporting a consolidated net loss for the financial year ended March 31, 2025:

Particulars (₹ in Lakhs)	Consolidated FY 2025	Consolidated FY 2024
Revenue from Operations	1,861.08	918.00
Other Income	15,434.05	14,621.00
Total Income	17,295.13	15,539.00
Finance Costs	19,424.50	13,585.00
Depreciation	1,037.67	1,120.00
Share of Loss in Associate/JV	(4,381.68)	2,327.00
Exceptional Items	(408.73)	(19,973.00)
Net Profit/(Loss) After Tax	(24,692.02)	(32,908.00)

The company generated revenue primarily from liquidating old finished goods inventory and scrap, which yielded ₹18.61 crores (₹12.94 crores from paper and ₹5.67 crores from scrap). However, high finance costs and the share of losses from associates continued to weigh on the bottom line.

Key Financial Ratios and Operational Metrics

Key financial ratios showed significant volatility due to the change in control and capital restructuring:

• Debt-Equity Ratio: Increased to 1.49 from 1.13 in the previous year.
• Inventory Turnover Ratio: Improved sharply to 1.32 times from 0.54 times, reflecting the liquidation of old stock.
• Current Ratio: Decreased to 3.53 from 7.25, indicating a change in short-term liquidity position post-restructuring.

As of March 31, 2025, the company employed 324 total personnel, including 88 permanent employees, as it gradually restarts operations at its Shree Gopal unit in Haryana.

The new board has stated that its primary focus is on swiftly resolving legacy issues and revitalizing operations. The company has prepared its financial statements on a going concern basis, reflecting management’s confidence in the revival strategy, supported by the recent capital infusion and planned asset sales.

The resolution plan

BILT formally concluded its Corporate Insolvency Resolution Process (CIRP) following the approval of a resolution plan by the National Company Law Tribunal (NCLT). The company has unveiled a completely revamped structure, including a new promoter, a reconstituted Board of Directors, and a strategic roadmap to revive operations.

The resolution plan, submitted by Finquest Financial Solutions Private Limited (FFSPL) , was approved by the NCLT on March 31, 2023, and implemented on June 12, 2023. This marks the end of a challenging period that began when the company was admitted into CIRP in January 2020.

In a significant shift of control, FFSPL has acquired a majority stake in BILT, now holding 51% of the equity shares. The erstwhile board, whose powers were suspended during the insolvency proceedings, has been replaced. A new board, led by Hardik Bharat Patel as Chairman & Whole-Time Director, has been constituted, alongside several new Independent and Non-Executive Directors.

A Monitoring Committee, comprising representatives of financial creditors and the new promoter, oversaw the initial implementation of the plan from April to October 2023, after which full management control was vested with the new board.

As part of the resolution plan, BILT undertook a comprehensive financial restructuring:

• Share Capital: The existing share capital was extinguished and reduced. Fresh equity shares were issued, resulting in a paid-up share capital of ₹5,500 lakhs (5.5 crore equity shares of ₹10 each) as of March 31, 2025.
• Debt Settlement: Outstanding borrowings of ₹55,653 lakhs to financial creditors were settled through a mix of equity, 7% Non-Convertible Debentures (NCDs), and 0.01% Cumulative Redeemable Preference Shares (CRPS). Several creditors also opted for upfront cash payouts.

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