They have already made significant progress. They are back in black, growing, have positive networth and most importantly the reserves are now positive. they are as good as out of BIFR. the only reason behind this being in BIFR “officially” is that they have still not got a hearing in the tribunal. As soon as that happens, they would be out.
you can talk to the company but not sure they will disclose it. You can come to know once its uploaded at the bifr site, just like this document. First of all try to find out if the hearing indeed happened or not.
i think its a wrong path that this discussion is going. BIFR is history. its networth is positive, dues settled and reserves positive. it has no business to remain in BIFR, and coming out of it is mere formality right now. What we should check is how big this business can grow.
BIFR was regulation governing sick companies in India which was implemnted in late eighties. Subsequently, in May 2016, GOI repeal BIFR Act (through SICA) and implemented new Insolvancy Code by name Insolvancy and Bankrupcy Code,2016.
Had this change would not have happen, the company post resucturing under BIFR scheme, would have shown Positive netwroth and would have sought permission from BIFR to exit. Now since the last order of BIFR attached in previous message on thread give indication that the company networth of the company turned positive and it was looking at BIFR exit, with Repeal of SICA act, the company has anyway came out of BIFR with positive networth.
Under new insolvancy regime, three parties, whether operational creditor, financial creditor (secured/unsecured) and shareholders of the company can apply for insolvancy. The code provide for standstill period of 6 months once the NCLT addmit the case to insolvancy. The new insolvancy professional would take over management of the company from board of directors and run the business and work under direction of creditor for revival plan. In case remedial plan is not successfully implemented or Creditor are looking at to liquidate the company, the company would go under liquidation. Anyway, as per code if the company is not revived in 180 days from reference, it would be subject to liquidation.
In view of above, in my opinion AIMCO would not be referring to NCLT and also with repeal of SICA, the company is out of BIFR with positive net worth.
Find enclosed excellent presentation about timeline and key issue in new Insolvency code:
Disclaimer: While I am insolvency professional registered with IBBI, I am still not legal expert and hence please do proper legal due diligence before making any investment decision.
Thank you Dhiraj for your insightful and detailed explanation of what was the rule of the land for the sick companies before December 2016, what changed recently through Insolvancy and Bankruptcy Code 2016, and finally & most importantly what if any impact it might have on company’s decision to further pursue on this aspect.
Hello J2EE Professional. I liked the fact that you started this thread. You have done whole lot of ground work and it is nicely reflected in the first post. My intent is absolutely not to divert discussion. Contrary to that I wanted to highlight the last sentence in the notice that company itself is having second thoughts on pursuing on the BIFR related case and given that it would be best to leave this discussion aside.
Has anyone done more research on this stock? This looks to be a great story and the discussions here has taken a very worrying turn instead of focusing on the stock. Let’s give the guy credit for doing initial research and providing us a good story to track.
i believe you mean the previous few quarters - yes, most of it as i am told. I keep writing to the CS (which gets replied after a lot of follow-up), but i think its good if all of us write our doubts to the company so that the increased shareholder focus will make them more responsive.