Colour drains out of Jenson
Calcutta: Paint maker Jenson and Nicholson (India) Limited is heading for liquidation after failing to firm up a resolution plan for a turnaround.
The committee of creditors in a meeting on Monday has unanimously decided to liquidate the company, which has defaulted on credit payment, the accumulated sum (including interest) of which was Rs 295 crore to financial creditor Vivid Colors Private Limited.
The J&N brand, however, is expected to survive following a 2015 move to transfer the same to another subsidiary - Jenson and Nicholson Paints Private Limited (JNPPL), where Chennai-based Sheenlac Paints picked up a 49 per cent stake in 2016 and is likely to further increase their holding.
In a filing to the Bombay Stock Exchange, JNIL said the company is going through the corporate insolvency resolution process and an insolvency resolution professional was appointed in August 2017 under the provisions of Insolvency and Bankruptcy Code, 2016.
The ailing paint maker had earlier informed its shareholders it was unable to raise finances for sustained operation and growth.