Kicking off a restructuring process, the Madhya Pradesh-based edible oils manufacturer KS Oils today said it has authorised State Bank of India (SBI) to appoint advisors and consultants to explore the possibility of restructuring its existing business.
The company has already approved a scheme for restructuring of its borrowings from banks and financial institutes to restore liquidity so that the company can continue its operation.
In a filing to the Bombay Stock Exchange (BSE), KS Oils said the Board has approved to “authorise SBI, the monitoring institution to appoint Pricewaterhouse Coopers, SBI Capital Markets and other advisors/consultants to explore the possibility of re-organising the existing businesses.”
The company has not been performing well as it posted net loss of Rs 101.81 crore in second quarter of the current fiscal. It had reported net loss of Rs 263.02 crore in the same quarter last year.
Its net income had also declined to Rs 667.84 crore from Rs 587.35 crore in the review period. The company is also awaiting approval of the government for excess managerial remuneration of Rs 96 lakh.
The company manufactures mustard oil, soybean oil, palm oil and vanaspati. It has plants in Madhya Pradesh, West Bengal and Rajasthan.
Shares of the company fell by 0.57 per cent to settle at Rs 3.46 on the BSE platform today.