CG Power asks Belgian arms to take protective steps amid fund crunch

CG Power and Industrial Solutions on Thursday said it has asked its two Belgium-based subsidiaries to initiate steps, including any protection measures, in view of fund crunch being faced by them.

Earlier, the company informed that the businesses of its subsidiaries in Belgium and Hungary have been severely affected due to paucity of funds and in Belgium, certain bank accounts have been blocked.

It had said that such events could result in potential legal and regulatory proceedings for recovery of dues initiated by creditors.

Now, the company said that considering the prevailing situation in Belgium, the Board of Directors of the Company has discussed the measures to be taken to protect the Belgium business from threat of potential bankruptcy and liquidation in a meeting held on Thursday.

Towards this, it said that the Board has inter-alia directed the subsidiaries Board at Belgium CG Power Sytems Belgium NV and CG Holdings Belgium NV and its management to initiate appropriate action including any protection measures in discussion with various stake holders including employees.