W.S. Industries (India) Ltd. (WSIIL) is taking steps to divest its insulator manufacturing plant in Visakhapatnam, Andhra Pradesh for part repayment of the outstanding liabilities owed to its secured lenders and to reduce further interest burden and other costs.
WSIIL proposes to sell/transfer its insulator manufacturing plant to Aaditya Yalamarty or his affiliate Winwin Speciality Insulators Ltd. in one or more transactions, said the company in a regulatory filing.
Accordingly, WSIIL would execute a non-binding memorandum of understanding with Allium Finance Pvt. Ltd, Edelweiss Asset Reconstruction Co. Ltd. and IDBI Trusteeship Services Ltd.
The conclusion of the proposed transaction is subject to execution of definitive documents, approval by the secured lenders and receipt of regulatory clearances, it said.The filing added that the purchaser had reached an agreement with the company and secured lenders for a net payment consideration of ₹20.85 crore.
During April 2019, WSIIL had entered into financing arrangements with the above mentioned parties pursuant to which the Visakhapatnam undertaking was mortgaged to them.
In Visakhapatnam, the company has immovable property spread over 47 acres along with superstructures, plant and machinery, electrical fittings, furniture, fixtures, stores, spares and inventories.
Due to various problems, WSIIL’s outstanding dues to secured lenders had accumulated. Therefore, the company has taken steps to divest the Visakhapatnam undertaking.
