This is to inform you that an application under Section 7 of the Insolvency and Bankruptcy code, 2016 was filed by Fort Cafe Food Services Pvt Ltd. (Financial Creditor) against Radhagobind ....
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Awaiting price reaction for this filing.
The NCLT Kolkata Bench has admitted an insolvency petition filed by Fort Café Food Services Pvt Ltd under Section 7 of the Insolvency and Bankruptcy Code against Radhagobind Commercial Ltd, a BSE-listed fabric trading company. The default amount is Rs. 1.02 crore (principal of Rs. 90 lakh plus interest of Rs. 12.6 lakh) on an unsecured loan taken in 2023 for a planned rights issue that never materialised. Mr. Najeeb T P has been appointed as the Interim Resolution Professional (IRP), and a moratorium under Section 14 has come into effect. The powers of the company's Board of Directors are now suspended and vested with the IRP. The company's FY24 annual review revealed that all its investments had become non-performing, its loan assets turned irrecoverable, and it faces an income tax liability of around Rs. 3.5 crore.
This is a deeply negative development for shareholders — the stock will likely see sharp pressure as the company enters a formal insolvency process with its board effectively replaced by the IRP. Existing shareholders face meaningful risk of dilution or wipeout depending on whether a resolution plan is approved or the company goes into liquidation, and trading in the shares may face restrictions under insolvency rules.