Disclosures by listed entities of defaults on payment of interest/ repayment of principal amount for unlisted debt securities i.e. NCDs and NCRPS
Awaiting price reaction for this filing.
Alps Industries has disclosed to the stock exchanges that it has defaulted on loans from banks and financial institutions. The total amount outstanding on such loans is approximately Rs. 670 crore, of which Rs. 679.90 crore is in default (including accumulated interest). The company has no default on unlisted debt securities (NCDs and NCRPS) of Rs. 228.54 crore. Total financial indebtedness stands at Rs. 908.45 crore. The defaults stem from a previously approved debt restructuring under the now-repealed SICA (Sick Industrial Companies Act), whose in-principal approval from lenders was withdrawn. The company is currently in discussions with EARC, a ~99% secured lender, for fresh debt restructuring. If these talks fail, additional liabilities could balloon by about Rs. 151.20 crore in principal, Rs. 1,867.24 crore in interest, and Rs. 20.04 crore in CRPS. The statutory auditors have qualified their reports on the accounts.
This is a deeply negative signal — the company is in serious financial distress, with loans fully in default and massive potential additional liabilities if restructuring fails. Shareholders should brace for significant stock price pressure, possible dilution, and a heightened risk of further write-downs or insolvency proceedings.