As expected in the industry circles, Indage Vintners has filed an appeal against the order passed by a High Court judge on March 19 to wind up its operations, to the division bench of the Bombay High Court, claiming it is not insolvent and that the workers would suffer if the company is forced to wind up and its assets liquidated.

In the appeal filed last Tuesday the company also said that it was restructuring debt and was in the process of getting back on the recovery trail. Justice Kathawalla of Mumbai High Court had reportedly noted in its order that the company’s net assets were about Rs 276 crores (Rs. 2.76 billion) while its liabilities, including secured and unsecured creditors, were Rs 400 crores (Rs.4 billion).

According to the Indian laws as applicable to corporations, the unsecured lenders who feel that the company is not solvent anymore can file a winding up petition against them and the High Court may appoint an administrator who would liquidate the assets and distribute according to the laid out procedures.

The unsecured creditors, including Sublime Agro and Kotak Mahindra Bank, filed winding-up petitions against Indage after it defaulted on payments towards the loans etc..

In the meanwhile, the secured creditors including State Bank of India, ICICI Bank, the private IndusInd Bank, and the State Industrial and Investment Corporation of Maharashtra (SICOM) owned by the Maharashtra government, are reportedly negotiating with the company to restructure its loans as part of a corporate debt restructuring package.

Earlier, dellWine had learnt from reliable sources that the appeal would be filed and the company was in fact in the process of completing the CDR process very soon. Promoters are also expected to inject unds under this scheme.

It is a matter of conjuncture what course the disposition of the petition would take, if the employees some of whom have not been paid for over 18 months also join in the petition of the unsecured creditors.

The case comes up for hearing on April 8. In the meantime, the share prices, after hitting the low of Rs. 30.20 on the news of the winding up order have bounced back and have been rising consistently and closed at Rs. 42.50 on Friday. The share opened today at Rs.40.40 but after touching a high of Rs. 41.80, came down to Rs. 40.40, with a trading of around 77,000 shares within the first 30 minutes. The speculators who invested a week ago would have made more than 40% profits on the last closing price!

For our earlier article, click http://www.indianwineacademy.com/item_4_372.aspx

Comments:

AMAN DEEP Says:
Rightly said Mr. Arora, some of employees had guided wrongly and projected wrong figure of industry to Mr.Ranjit. But i feel if indage wants to re bounce it should project on their quality instead of quantity.I know their sales head Mr.verma the person who drowned the company projecting primary sales instead of secondar sales.I wonder Mr.Ranjit has done MBA from renowned business school, when all this mess was going on why he was not able to track the wrong ongoing.despite all this last year Markets of Rajasthan,Uttar pradesh , punjab was open.I personally feel in current year indage will bounce back and will learn lesson not to repeat mistakes which they have done in past.lots of corrupt employees have left company and i think this is good for indage.Mr.shyamji who brought culture of wine in India hats off to him and he should personally take care of company. The brands of indage are very good. My best wishes are with indage
Posted @ April 19, 2009 10:50

Rengaswami Says:
I have been mentioning for past 2 years that this company is going to be liquidated, and the same is coming true. The Owners have let down a lot of people by bringing the company to such a pass. They have not paid small vendors like us, employees, government, etc. Where has all the money gone?? There has been gross mis utilisation, mis appropriation, callous management with utter disregard to sense of propriety and equanimity. I am sure, even now in their submissions to Court, lendors etc they have not projected the true state of their liabilities - by including all the vendors bills like our bill, etc They are just hoodwinking public using their political clout and halo. We are GOD Fearing people and still trust justice shall prevail and we will recover our bill dues when the court orders scrutiny of books, .
Posted @ April 09, 2010 10:34

Wine Says:
Mr. Motiwala .. why dont you take a majority stake in Indage if you believe in growth? Else you should stay away from making comments related to stock .. this Space is meant for Wine related news and not trade in wine companies. Hopefully Mr. Arora would also agree and restrain from publishing stock prices of Indian companies who are on verge of bankruptcy or winding up in future.
Posted @ April 07, 2010 13:22

Shabbir Motiwala Says:
this is the right time for a long term investor to enter the scrip, this industry is growing fast and definately it will come out of the red, dont miss this opportunity, it does not come again and again
Posted @ April 06, 2010 10:50


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