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| Exchange Disseminated Time | Elgi Equipments Ltd has informed BSE that based on the decision of the management of the Company, the following events have transpired.
The cost structure of the company's subsidiary in France, Belair has been challenging for some time. Multiple attempts to find a solution to this problem were not successful. Belair's business operations have been severely affected. A situation has arisen whereby Belair is unable to even meet routine financial commitments to run its business operations smoothly. SAS Belair is also unable to service its debts to the Company. Therefore, it was decided to seek protective action before the appropriate Commercial Court in France. Thus, Belair filed for protective action with the commercial court in Annecy, France.
The court has appointed an administrator and this was intimated to the company on April 28, 2016. Belair is no longer under the control of the company and is under legal redress as per the French laws. While the past investments and dues may not be fully recoverable, the company will not have any future liabilities. |
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