The Hindu Business Line : Pennar Profiles to appeal against BIFR order

THE board of directors Pennar Profiles Ltd (PPL) has decided to appeal to the Appellate Authority for Industries and Financial Reconstruction (AAIFR) against the recently passed order of the Board for Industrial and Financial Reconstruction (BIFR) directing winding up of the company.

In a communication to stock exchanges on Thursday, the company said the decision was taken by its board at its meeting held on October 31. However, the company said it is yet to receive the BIFR order. The company said it has received a copy from the bank.

The PPL board noted that appealing before the AAIFR was necessary since a proposal for takeover of the company by a Danish company - Alumeco - was under active consideration of the lenders. The board was of the opinion that the company would soon spring back to health after the takeover by the Danish company.

As the repeated attempts to revive the ailing company failed to yield any interesting results, BIFR has confirmed its opinion of winding up of the company. In the orders passed recently, the BIFR bench noted that it had not been possible to formulate any acceptable revival scheme for the company to make its net worth exceed the accumulated losses within a reasonable time while meeting all its due financial obligations.

Further, the BIFR bench directed the company and its promoters to safeguard the assets and should not dispose of any of its fixed or current assets till an official liquidator was appointed by the High Court concerned.

Earlier during July last year, BIFR had directed PPL to enter into an understanding with the proposed foreign investor and formalise the arrangement of supplying raw materials and buy-back of products.