I have considerable number of shares of Alps Industries bought at an average price of Rs36 per share. I recently came to know that the company has been declared bankrupt. What are my options?
- Yogesh Garud
The company has been declared sick by the Board of Industrial & Financial Reconstruction (BIFR). BIFR will now decide whether to liquidate or revive it. The company currently has outstanding debt of Rs1,160.09 crore (March 2010 figure) while its net worth is completely depleted. It is still trading on the BSE at Rs3.33 (March 24, 2011). You can hold out for a better deal in the liquidation process, but remember that you are an equity investor and will get something only if there is something left after paying off all liabilities (creditors). If you don’t want to wait for this, cut your losses and sell on the bourses now.
This article was originally published on May 09, 2011.
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