Another blow to Arun Jagatramka's sinking ship
KOLKATA: Arun Kumar Jagatramka, once India's largest non-captive metallurgical coal maker, seems to be in dire straits again. After having lost Gujarat NRE Coke Limited to liquidation earlier this year, as the company owing about Rs 5,000 crore to its lenders failed to find a resolution plan and succumbed to liquidation, Jagatramka's only refuge -Bharat NRE Coke limited also has been dragged to the Bankruptcy Court.
Jindal Steel and Power Limited has moved Bharat NRE to the NCLT by filing an insolvency plea against it. The petition being (CP(IB)No.1340/KB/2018) filed at NCLT Kolkata came to be listed on 05.10.2018. Once admitted, this would have serious consequences for the Bharat NRE, its directors and shareholders. Bharat NRE is also engaged in manufacturing low-ash metallurgical coke.
The company was incorporated in 2003 and has its registered office in Kolkata.
The instant order dated 05.10.2018 is yet to be uploaded on the website of the NCLT however the lawyers present in the NCLT informed that the Bench has asked Bharat NRE to file a reply within 2 weeks and has posted the matter to November 12th, 2018 for further hearing.
Bharat NRE Coke Ltd. is a non-listed public company. The Board of Directors of the company consists of Mr. Arun Kumar Jagatramka, Mrs. Mona Jagatramka and Ayush Jagatramka.
During the year 2017-18, the total income of the company was Rs. 356 crores. Total liabilities of the company stand at Rs. 187 crores. The company has defaulted in repayment of Rs. 29 crores as term loans from SICOM Ltd.
It has also defaulted in payment of interest liability of Rs. 16 crores.
Jagatramka who saw the meteoric rise between 2004-2007, is witnessing an equally dramatic fall off lately.