JBF Industries hit a fresh 52-week low of Rs 143, down 19%, extending its over 25% fall on BSE, after the rating agencies downgraded the rating of the company on delays in servicing its debt obligations by JBF group.
In past two weeks, the stock slipped 47% from Rs 269, as against 1.4% decline in the S&P BSE Sensex.
“The rating of the company has been downgraded to “D” default rating by rating agencies predominantly due to delays by JBF group in servicing its debt obligations,” JBF Industries on July 28, 2017, said in a regulatory filing.
The company said, due to the recent policy changes by the Government of India namely, Demonetisation exercise and Goods & Service Tax (GST) implementation, there have been protesting shut downs in the domestic unorganized textile segment.
This has resulted in the cash flows of the company to be severely affected and delays in servicing some of its debt obligations with the lenders. In turn this has led to a formation of a Joint Lending Forum (JLF) by the lenders as per applicable guidelines of the Reserve Bank of India (RBI), it added.
JBF Industries on Tuesday said that rumors of any defaults on loan in the company’s international operations and any other rumors beyond what the company has already published in previous announcement are baseless. Till 30th June, 2017, there was no delay in payment of interest or principle against any banks in the UAE.
Meanwhile, the company said it has rescheduled the board meeting to Friday, 11th August, 2017 at 3.00 pminstead of Thursday, 10th August, 2017 to consider unaudited financial statements for the quarter ended on 30th June, 2017.