Binani Industries slumps on Court ruling

Binani Industries, intra day fell to the low-point of the day at Rs.82.60, down 5% and continues to remain in the red, recovered a bit and now at Rs.85 levels.

The stock is down in the red following a ruling from the Court in favour of the creditors, giving them possession rights of its subsidiary’s immovable property.

The company updated yesterday after market hours, “the company has received the copy of the order of Bombay High Court dated June 23, 2016, disposing off the writ petition by Edayar Zinc Ltd (EZL) one of the subsidiaries of the Company, filed against the action initiated by its Secured Creditors under Section 13(4) of the SARFAESI Act, 2002. The Court whilst ruling in favour of Secured Creditors has granted six weeks period from the date of the order for seeking appropriate legal remedy from DRAT and directed Secured Creditors to seek only symbolic possession of immovable property during such period granted to EZL.”

Binani Industries had ended FY16 with a consolidated net loss of Rs.453 crore; its interest outgo for the year was at Rs.627 crore. Its debt currently stands at Rs.5800 crore.