The Kolkata-based rice-exporting food company — which has an outstanding loan of about Rs 5,200 crore — has informed the stock exchanges that Surendra Joshi, an operational creditor, has filed an application at National Company Law Tribunal (NCLT) at Kolkata.
The NCLT has initiated corporate insolvency resolution process and Anil Agarwal is appointed as interim resolution professional.
The powers of the board have been suspended and they are now vested on Anil Agarwal. Following the NCLT order, a moratorium is granted to the company.
UCO Bank-led consortium of 21 lenders to REI Agro had alleged that the company had made fraudulent transactions and diverted funds through forgery.
According to reports, the forensic probe on it conducted showed that there is some shortage of the assets which probably could have been some diversional files. UCO Bank had an exposure of approximately Rs 850-860 crore.
After the exchange filing, the shares of the listed firm dipped 2.08 percent to end the day’s trade at Rs 0.47 per share.
As on September-end 2016, REI Agro had posted a net loss of Rs 66 crore as against a loss of Rs 256 crore in the September quarter in 2015.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
