Bank Of India applies for insolvency petition against Dharani Sugars

Chennai: Bank of India has applied to the National Company Law Tribunal (NCLT) for insolvency petition against the Dharani Sugars and Chemicals belonging to PGP Group of Companies. The company’s manufacturing plants are located at Tirunelveli, Tiruvannamalai and Villupuram districts in Tamil Nadu.

The company has forwarded a one-time settlement proposal to the bank and has submitted a resolution plan to its lenders, and both are under consideration. In a BSE filing, Dharni Sugars said, “In the meantime, Bank of India has chosen to refer it [the default] to NCLT. Its financial position is impacted due to surplus sugar and falling market prices.

Due to various reasons, Tamil Nadu sugar industry is in deep crisis, and they are awaiting financial assistance to come on track.
Sugar producers from Tamil Nadu have requested a relief package to come out of this grim situation. Recently, Union Finance minister Nirmala Sitharaman had assured Tamil Nadu sugar industry to revive when she met the representatives of the sugar sector in Chennai. She had promised to arrange a meeting with RBI and banks, where they can discuss and find a solution to uplift the sugar industry. The industry is hoping sops after assurance from Finance Minister.

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