The New Delhi-based company, which is facing insolvency proceedings under the National Company Law Board (NCLT), asked the central bank to allow it to operate on a “going concern” basis, the Financial Express reported. The bank filed a petition against the company with the NCLT in August under Section 7 of the Insolvency and Bankruptcy Code.
MBSL’s request is currently under consideration. However, lawyers representing both parties have declined to disclose details of the proposal. The next hearing for the case is on September 25.
Once the petition is admitted, a committee will submit a resolution within 180 days, with the potential to delay the decision to 270 days. Otherwise, MBSL will go into liquidation and the NCLT will suspend the company’s board.
According to Capitaline Data, MBSL’s gross debt stood at INR 7,720 million in fiscal 2013. The company reported a net loss of INR 2,070 million on revenue of INR 2,260 million over the same period. Its total debts currently stand at around INR 10 billion, with a little less than INR 1 billion owed to the central bank, the Financial Express said, without citing sources.
MBSL has been in financial distress for several years now, but last October it revealed that efforts to restructure its debts had failed. It has already received default notices from several of its creditors.
According to Bridge to India, India imported $3,197 million worth of solar cells in fiscal 2017, up 36% year on year. Strong inflows of foreign PV products — in addition to the World Trade Organization’s ruling against India’s domestic content requirements for solar projects last year — have left domestic PV module suppliers reeling. However, the Indian government recently initiated an anti-dumping investigation against imports of solar products from China, Taiwan and Malaysia, following a complaint by the Indian Solar Manufacturers Association.