BGR Energy Systems Defaults On Rs 631-Crore Working Capital Loans
The default came days after the State Bank of India recalled its loan to the power equipment maker.
BGR Energy Systems Ltd. defaulted on obligations worth Rs 631 crore owed to multiple banks, days after the State Bank of India recalled its loan to the power equipment maker.
The BG Raghupathy family-owned company defaulted on working capital facilities in October and November, according to its exchange filing. It owed the amount to ICICI Bank Ltd., Indian Bank, Bank of India.
The Reserve Bank of India had designated the account as divergent to reflect the gap between bad loans observed by the regulator and those reported by lenders. Following that, banks had started classifying the account as a non-performing asset.
Last year, Tamil Nadu Generation and Distribution Corporation had issued a notice to BGR Energy owing to delays in completion of a project. The state utility had appointed BGR Energy for the expansion of Ennore Thermal Power Station.
In the year ended March 2023, BGR Energy reported a net loss of Rs 479 crore, while its sales revenue fell 34% year-on-year to Rs 806 crore.
Its total outstanding dues to financial institutions stand at Rs 4,256 crore. The company's total indebtedness stands at Rs 4,688 crore, and it owes Rs 2,060 crore to SBI alone.
