Wind energy solutions provider Inox Wind (IWL) is challenging the National Company Law Tribunal’s Chandigarh bench order on insolvency, claiming it is solvent and in “excellent” financial health.
ET had exclusively reported on Saturday that NCLT passed an order on July 5, clearing way for the insolvency of the company after an ‘operational creditor’ Jeena and Co moved a petition for the same citing non-payment for services it provided to Inox Wind for clearance of import shipments to Nhawa Sheva, Mumbai.
“IWL has preferred an appeal before the National Company Law Appellate Tribunal (NCLAT), praying that the said proceedings be quashed. The matter has been listed for hearing on Monday, July 17, 2017,” the company said in an email response to ET’s story on Saturday. “IWL has already settled the dispute with the operational creditor, Jeena &Company,” the statement added.
In its order, a copy of which is with ET, the tribunal had observed, “except for a simple denial in response sent by the respondent, there are no other circumstances which can be considered to say that the corporate debtor has raised a dispute.” The tribunal also said that there was no representation from Inox Wind during the hearing.
“It is also important to mention that fundamentally, IWL remains a solvent company in excellent financial health-.The company has been regular in servicing all its commitments to its lenders, and has a long term rating of AA- and a short term rating of A1+ from CRISIL,” the company said in a statement.
Inox Wind’s financials have been under pressure as 2016-17 revenue declined 23% year-on-year to Rs 3,415 crore. Net profit for the year fell 34% to Rs 302 crore in the year. The company’s last declared consolidated debt was around Rs 1,500 crore from 17 banks including HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank, Axis Bank and State Bank of India. However, the company said it has a net worth of Rs 2,190 crore as of March 31, and its cash balance stands at Rs 749 crore as of date.
The insolvency commencement date is July 5, while the estimated date for the closure on insolvency resolution process is January 1, 2018. Creditors are required to submit proof of their claims before July 25.