Case Study - Insolvency
- NCLT admits insolvency filed by UB Engineering Ltd
- This is the first such case the NCLT has admitted
- Following the decision, UB Holdings, which owned about 37% loses control over the affairs of UBEL
- Failing resolution, the company will go in for liquidation
- Though UBEL is a listed company, the stock has been suspended from BSE for penal reasons
- UBEL has classified term loans, cash credits and other facilities availed from banks as 'other current liabilities', which at the end of the FY16 stood at Rs. 434.9 crore.