Save employment of 1000 employees and savings of 2 lac public shareholders #saveGujaratNRE

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Liquidator set to mint Crores of Rupees while employees, Bankers and shareholders lose everything.

We need State Bank of India to support the revival scheme and save our livelihood – No additional funding and potential for full repayment of all Bankers’ dues – Liquidation benefits only the Liquidator - Remove CA Sumit Binani

Gujarat NRE Coke has been in liquidation since January, 2018 with CA Sumit Binani as its liquidator under the IB Code. The company was the 1st one to be liquidated as a going concern. Even after 1000 days under liquidation, the company remains operational and has achieved a turnover of more than Rs 1300 crores during liquidation and has paid monthly salaries and wages of the workforce from its own operational cash flows without any outside funding support.  This itself proves beyond doubt the viability potential of the Company. 

Our 400 Migrant Workers were provided for with shelter and food, when others were walking long kilometres back to their homes. 2 Labour Commissioners have sent letters of commendation for our work and handling of human life during the ongoing Covid-19 pandemic, while the liquidator despite holding more than Rs 3 crores in bank fixed deposits which was retained out of the current cash flows of the company has refused to pay our March wages during the Lockdown and was paid only in Mid May after relaxation of Lockdown.

In fact, liquidator Sumit Binani is threatening to lockout all employees from our work place, and has ordered a “No Work No Pay” directive! 

CA Sumit Binani as Liquidator has continuously misled the Bankers about the viability potential of the Company and never informed them properly about ongoing cash generation that has allowed payment of all statutory dues and monthly wages even during the COVID pandemic and also safely maintained all its migrant workers in its plants at Karnataka and Dharwad with their rations taken care of properly.  Certificates from Central and State labour Departments is enclosed.

 Liquidation of Gujarat NRE Coke Ltd. will result in —

Liquidator CA Sumit Binani would get Crores of Rupees
Loss of employment of around 1000 employees
Loss of livelihood of 10,000 families 
Total loss of Investment for more than 2 lac public investors for many their lifetime savings 
Almost NIL recovery for Bankers
Total loss of value of 35% equity held by banks
No Atmanirbhar Bharat – Steel Industry has to import Met Coke from China.

On the other hand

Benefits to Bankers of Revival Scheme, if approved

No additional Funding
No haircut
No Moratorium
Sustainable debt – repaid with interest
Immediate cash value of 92 crores shares held by  Bankers
Continued employment of 1000 people
Protection of life savings of 2 lac small shareholders
Atma Nirbhar Bharat - Reduce dependence on China

Gujarat NRE Coke Ltd. is the success story of Indian industry. From a struggling MSME it has grown to one of largest Indian companies, even achieving MNC status before the effects of the 2008 Global recession hit. It has the lowest employee attrition rate in the country, with a large number of employees with the company for more than 15 years on average. And it has a track record of rewarding its shareholders with maximum Bonus Issues and rich dividends.

Revival Scheme u/s 230 proposed by 109 shareholders got overwhelming majority support of unsecured creditors and more than 500 public shareholders and waiting for Bankers led by SBI to support the same.  Bankers biggest beneficiaries in the scheme and loose everything in Liquidation.

Support Revival of Gujarat NRE Coke Ltd.

Remove liquidator and stop liquidation