Texmaco Rail & Engineering, the flagship company of the Adventz Group, on Monday said it has moved the National Company Law Appellate Tribunal (NCLAT) against a National Company Law Tribunal (NCLT) order to initiate insolvency proceedings against erstwhile Bright Power Projects (lndia), now a unit of the company.
Notably, Bright Power Projects (India), which had been a subsidiary of Texmaco Rail & Engineering, was merged into and with the latter in terms of the scheme of amalgamation approved by the shareholders and the Kolkata bench of the NCLT vide order dated April 4, 2019, effective date being April 1, 2017.
In a stock exchange filing on Monday, Texmaco Rail said the Kolkata bench of the NCLT has admitted an insolvency petition of Veekay General lndustries, an operational creditor of erstwhile Bright Power, under Section 9 of the Insolvency and Bankruptcy Code against the EPC firm for an “alleged operational debt of Rs. 63 lakh (approx.)”.
Following the tribunal’s order, Texmaco Rail has filed an appeal against it before the NCLAT. “Bright Power, specialized in Railway electrification, is poised for further growth, owning to the Railway’s plan for complete electrification of tracks in the next 3 years,” Texmaco Rail said in its latest annual report, adding the turnover of the bridge division for the last fiscal was only Rs. 17.52 crore due to lack of orders. “However, the outlook is bright as the Bridge Division has been able to book a total Order of Rs. 90 crore which will reflect in the turnover of the coming year,” the annual report added.
For last fiscal, Texmaco Rail’s net profit and gross revenue from operations were at Rs. 75.30 crore and Rs. 2005.20 crore, respectively. Interestingly, credit rating agency India Ratings & Research in the last month had downgraded the company’s long-term issuer rating and simultaneously placed it on Rating Watch Negative (RWN), on account of the company’s continued negative free cash flow, rising net debt and weaker-than-previously-expected credit metrics.
via Texmaco Rail moves NCLAT against NCLT order on unit – The Financial Express
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