The Calcutta High Court on Monday asked for appointment of a provisional liquidator to take stock of the assets of Dunlop India Ltd.
The company's creditors and a few employees had sought the liquidation of its assets last year. Mr Justice Sanjib Banerjee admitted the petition from 41 applicants on November 8, 2011.
A liquidator is appointed for taking control of all the assets of a company for settling claims against it when a company goes into winding-up process.
As on March 31, 2011, the company has unsecured loans of about Rs 272 crore and secured loans of about Rs 48 crore.
Dunlop to appeal
According to the Dunlop Vice-President, Corporate Communications, Mr Dhrubajyoti Nandi, the company will appeal to the Division Bench against the order.
“The West Bengal Government's counsel has pleaded that the present promoter (Mr Pawan Kumar Ruia) to be allowed to retain control over operations. We have been asking for the support of State Government. Now that we see it is forthcoming, we are hopeful that things will sort out,” he said.
Operations shut
While Dunlop's Sahagunj plant in Hooghly district of West Bengal was closed down in October last year, its Ambattur unit in Tamil Nadu shut operations early this year.
Close to 1,310 workers are employed in the two units.
The total production capacity at each of these plants is close to 90 tonnes a day.
“We have prepared restructuring proposals for both the units and have submitted it to the respective State Governments. We are hopeful that the respective State Governments will consider the proposal and help us revive and turn around the company,” Mr Nandi said.