Clarification of news item published in the newspaper
Awaiting price reaction for this filing.
Nagarjuna Fertilizers and Chemicals Ltd (NFCL) has clarified a recent newspaper news item following the sale of all its assets. The company states that after the SARFAESI action taken by its secured creditor ACRE (Assets Care and Reconstruction Enterprise) in 2023, the company lost both its core assets (Urea and MF facilities, sold for Rs. 1,685 Crores) and non-core assets (sold for Rs. 200 Crores). ACRE had claimed total debt of Rs. 3,858 Crores, and issued a No Due Certificate in July 2024. Post-sale, the company's financials are no longer treated as a going concern, and most staff have left. The company says it has no knowledge of the current owners' plans, no ongoing negotiations, no undisclosed price-sensitive information, and no pending regulatory or legal proceedings.
This is a significantly negative development for shareholders. The company has effectively lost its operating assets and is not a going concern, raising serious concerns about future business continuity and shareholder value. Recovery for equity holders appears very limited given the massive gap between the debt settled and the value extracted by the secured creditor.