Williamson Magor defaults on payment of ₹164.78 cr towards repayment of loan facilities

Williamson Magor & Co, an investment arm and one of the holding companies of the Khaitan familyled Williamson Magor group, defaulted on the payment of ₹164.78 crore towards repayment of principal and interest on loan facilities from banks and financial institutions for the fourth quarter of last fiscal.

In a stock exchange filing, the company said the total financial indebtedness of the entity, including shortterm and longterm debt, stood at ₹513.67 crore as of March 31, 2024.

According to the company’s annual report for FY23, lenders are HDFC Bank, ICICI Bank and Punjab National Bank, among others.

In a stock exchange filing, the company said the total financial indebtedness of the entity, including shortterm and longterm debt, stood at ₹513.67 crore as of March 31

FINANCIAL SETBACK

Significantly, the company had also defaulted in repayment of principal and interest on loans to the lenders for the third quarter of FY24.

After announcing the third quarter results on February 7, Williamson Magor & Co said, “During the quarter ended December 31, 2023, the company’s financial performance has been adversely affected due to external factors beyond the control of the company and a negative net worth due to the classification of loans and advances as nonperforming assets. The company has defaulted in repayment of principal and interest on loans to the lenders and others and the liquidity issues faced by the company are being discussed with them.”

The company said it was in dispute with its secured lenders, namely HDFC Bank and Incred Financial Services (formerly KKR Financial Services) and accordingly, its board of directors had decided not to recognise interest on such borrowings for the third quarter last fiscal as the same was unascertainable at present.

NET LOSS

It reported a net loss of around ₹15 crore on a consolidated basis for Q3FY24, against a net profit of ₹20 crore for Q3FY23. Its revenue from operations during the third quarter of the last fiscal fell to ₹52.54 lakh from ₹12.30 crore for the corresponding period previous fiscal.

The auditors raised questions about the company’s ability to continue as a going concern.

Notably, the financially stressed Williamson Magor group had lost control of Eveready, the country’s largest dry cell battery maker, two years ago.

In July 2022, the Burman family, promoters of Dabur India, reclassified itself as the promoters of Eveready Industries, replacing Khaitans.