BGR Energy Systems Limited has informed the Exchange about Corporate Insolvency Resolution Process
BGRENERGY · price
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The National Company Law Tribunal (NCLT), Amaravati Bench, has admitted an insolvency petition (CP (IB)/58/7/AMR/2024) against BGR Energy Systems Limited filed by the National Asset Reconstruction Company Limited (NARCL). The petition, originally filed by Canara Bank on November 7, 2024, concerns a default of Rs. 584.67 crore (approximately Rs. 585 crore) as of August 31, 2024, across multiple fund-based and non-fund-based loan accounts related to power projects (APGENCO, Ghatampur/NUPPL, and OPGCL). The original default date is cited as June 30, 2022. The NCLT has appointed Mr. Dommeti Surya Rama Krishna Saibaba as the Interim Resolution Professional (IRP). A moratorium has been declared under Section 14 of the IBC, suspending all legal proceedings, asset transfers, and enforcement of security interests against the company. The company's Board of Directors stands suspended, with management now vesting with the IRP.
This is a highly negative development for shareholders. The company enters a formal insolvency resolution process, its board is suspended, and all creditor claims will be addressed through the CIRP. Equity holders will likely face significant dilution or total loss depending on the resolution plan outcome.