NRC Ltd (formerly National Rayon Corporation Ltd), which has been under lock-out for the past nine years, has proposed to sell its assets including land parcels and machinery, and has sought shareholders’ approval for the sale.

The company is planning to “sell and transfer fixed assets including land, building, plant and machinery and other assets”, which will come up for voting at NRC’s 70th annual general meeting (AGM) scheduled for Tuesday .

The assets at its Thane plant in suburban Mumbai may be sold to entities or persons as determined by the board, and on “such terms and conditions as the board may deem fit in the best interest of the company,” the notice added.

The company had declared a lock-out with effect from November 15, 2009, which is continuing and is in force. The Board for Industrial and Financial Reconstruction (BIFR) had declared the GP Goenka-promoted company as a sick entity and had appointed ICICI as the operating agency for the unit. Mails sent to the company went unanswered as of press time Monday.

Litigation

NRC had sold 339 acres of its property in 2007 to a developer, and later in 2010 possession of 272 acre of land was given to the developer following an order by the Appellate Authority for Industrial and Financial Reconstruction (AAIFR). Later in 2011, the Bombay High Court had set aside the AAIFR order, which was later upheld by the Supreme Court in 2012.

According to the company’s annual report for 2017-18, the developer had paid ₹74.25 crore as advance for the purchase of land and ₹24.50 crore which is lying in no-lien account with a bank.

The company also said that certain financial and operational creditors have initiated corporate insolvency process under the Bankruptcy Code 2016 against the company and the matter is pending before the National Company Law Tribunal.

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