The Indian Renewable Energy Development Agency (Ireda) has initiated legal action under Section 7 of the Insolvency and Bankruptcy Code against Gensol Engineering due to the company’s failure to repay a loan of Rs 510 crore. This was disclosed in a stock exchange announcement on Wednesday.
If the National Company Law Tribunal accept the insolvency petition, it is anticipated that all of Gensol’s creditors will need to submit their claims to the resolution professional appointed by the court, and the company’s equity value may potentially be lost.
On Wednesday, Gensol Engineering shares rose by 5 percent to reach Rs 60 each. Market cap of the firm stood at Rs 228.55 crore.
The company is also under the scrutiny of various…
