Private sector lender IndusInd Bank BK has called for about 14.6 million mortgage shares of Birla Tires, a Birla Group company, accounting for 10.21% of the total equity share capital of the indigent tire maker.
Notably, earlier this month, the Calcutta bench of the National Company Law Tribunal (NCLT) directed to start bankruptcy proceedings against Birla Tires, accepting a bankruptcy petition of SRF Limited, an operational creditor of the tire manufacturer, for failure to pay. More than 15 crore rupees.
The petition filed by SRF under Section 9 of the Bankruptcy and Insolvency Code (IBC) to initiate corporate bankruptcy proceedings (CIRP) against corporate defaulter Birla Tires was accepted, the NCLT Calcutta Bench said in its order on May 5.
In a stock exchange filing on Tuesday, Birla Tires said IndusInd Bank had called for about 14.6 million mortgage shares of the company on May 10. And, there were reasons for liability for term loans of Rs 71.11 crore taken by Signet Industries. BK Birla is a subsidiary of Flagship Kesoram Industries.
The promoters owned 50.91% of Birla Tires at the end of the third quarter of last fiscal. In the last financial year, the company’s total revenue was Rs 22.44 crore, while net loss was Rs 655.67 crore.
Significantly, Deloitte Huskins & Sales, the company’s statutory auditor, resigned on May 11, 2022.