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Wednesday, February 15, 2017

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.

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