United Spirits seeks shareholders nod for BIFR protection

United Spirits has sought shareholder approval to seek protection of the Board for Industrial and Financial Reconstruction, the company informed the exchanges on Tuesday. In the preceding four financial years, United Spirits’ net worth has been eroded by over 50 per cent from its peak levels due to accumulated losses as of March 31, and therefore, the company qualifies for protection under BIFR, the notification said. According to the notification, the board of United Spirits, subsidiaryof UK-based Diageo Plc, has prepared a report on the causes of the erosion in net worth, as required under Section 23 of the Sick Industrial Companies (Special Provisions) Act, 1985. The UK-major had acquired about 55 per cent stake in United Spirits in 2013-14. Shares of United Spirits slipped 0.7 per cent at ₹2,432.55 on the NSE.