Nitin Spinners, one of the leading Manufacturers and Exporters of cotton yarn and knitted fabrics has completed the process for exiting the Corporate Debt Restructuring (CDR) mechanism for its loan facilities by paying the recompense amount as approved by CDR Core Group. The company has made the payment of the recompense amount to the lenders.
The company resorted to CDR mechanism in March 2009 due to forex losses and adverse business scenario in 2007-08. The company achieved turnaround in very short period of three and half years and opted for voluntarily exit from CDR mechanism. This is one of the shortest turnaround in the history of CDR mechanism. The provision for recompense amount has already been made in the financials of 2012-13 and as such current year’s profitability will not be adversely affected.
CDR exit will lead to greater operational and financial flexibility to the company and the company can go ahead with its growth plans. This will also lead to reduction in financial cost to the company.
Nitin Spinners is engaged in manufacturing 100% Cotton Yarn and knitted fabrics. The company is having an installed capacity of 77,616 Spindles, 2,936 Rotors and 31 Knitting Machines.