Shree Renuka turns bitter
A company as big as Shree Renuka Sugars has turned into a penny stock. The stock had hit a new low at Rs.7.03 on 25th Sept and today it down at Rs.7.40 levels. The overall mood on the counter is pretty somber.
The company announced yesterday that its Brazilian subsidiary of the company viz., Shree Renuka do Brasil Participacoes, together with all of its subsidiaries has filed for protection under Judicial Recovery in the designated court in the capital of the state of Sao Paulo, Brazil.
The company has stated that after acceptance of the request under the Judicial Recovery Law, Renuka Bazil will be under Judicial Protection for 180 days. During this period, the company will have tpo present a plan to the Court for approval with the creditors, including Banks.
Shree Renuka has said that it believes that reorganisation under judicial recovery may be the best way to reorganise and protect its Brazilian arms and eventually turnaround the Brazilian business. Underlying operating business has been quite steady this year in these companies with combined cane crushing of 5-7 million tonne till September 27, 2015