XL Energy Limited has informed the Exchange about Salient Features of the Resolution Plan.
Awaiting price reaction for this filing.
XL Energy Limited has disclosed the salient features of the resolution plan approved by NCLT Mumbai on April 19, 2024, under the Insolvency and Bankruptcy Code. A consortium of Karishma Jain, Jupiter City Developers (India) Limited, and Adwaita Navigations Private Limited is the successful resolution applicant, infusing Rs. 2.95 crore to settle CIRP costs and creditor claims. The company's net worth is projected to turn positive at Rs. 10.87 crore from a negative Rs. 76.58 crore pre-resolution, and it will be acquired on a going-concern basis with total assets of Rs. 10.97 crore. Existing promoter shareholding (22.23%) has been completely cancelled for nil consideration, and public shareholders face massive dilution — their equity holding reduces from 2.27 crore shares to just 80,100 shares, giving them only 5% of the post-resolution equity. The new business strategy shifts focus to trading and import of industrial commodities like coal, cement, pet coke, iron ore, and fertilizers.
Existing public shareholders are hit with a near-total wipeout of their equity value, retaining only a tiny fraction (80,100 shares) of their original holdings. Promoters have been entirely eliminated, and the company will emerge from insolvency under new management with a completely different business focus on commodity trading, while minimum public shareholding compliance will be achieved as per SEBI norms. No delisting is proposed.