Vadodara: Financial mess in the Diamond Power Infrastructure Ltd came (DPIL) to fore recently when one of its group companies, Diamond Power Transformers Ltd (DPTL) was declared bankrupt by National Company Law Tribunal (NCLT).
DPTL had failed to pay Rs 111 crore towards dues to UCO Bank, Indian Overseas Bank and a private financial institution that led NCLT to give the order to liquidate the company.
The move came after DPTL moved NCLT in June last year and offered to restructure the debt. The company failed to find a new investor according to new government guidelines so the Committee of Creditors filed for bankruptcy and liquidation of the firm. While 40 per cent of this company is owned by Diamond Power Infrastructure Ltd (DPIL), the rest is owned by a firm owned by the Bhatnagar family.
DPTL that is reeling under heavy debts too is looking for investors. The banks that had given loans to DPTL had in 2016 converted a portion of their loans worth Rs 828.43 crores in equity. But the bank lost hundreds of crores in equity value as they had purchased DPTL shares at Rs 41 apiece that is now hovering at around Rs 8 per share. Bhatnagar had claimed in February that DPTL’s losses reduced from Rs 262 crore in third quarter of 2016 to Rs 29 crore in the same quarter of 2017.
In January, a Mumbai-based financial institution had taken symbolic possession of two floors in the posh Mayfair Atrium after DPTL failed to repay a loan of Rs 33 lakh.tnn
