MUMBAI: Nimbus Communications Ltd, parent company of Neo Sports Broadcast, has declared it will go in appeal against a recent ruling of the Bombay High ordering the liquidation of the company in a six-year-old lawsuit filed by the Union Bank of India (UBI) against the sports broadcaster.
“We are disappointed with this order and intend to file an appeal for which we believe we have very solid grounds, including the fact that we do not owe any monies to Union Bank and that the company’s cash and assets exceed any liabilities,” Vaibhav Agarwal, business head, Nimbus Communications Limited told SportzPower.
“The fact that the company has defaulted even payments of statutory dues like income-tax and service tax etc. shows that the solvency of the company is questionable. The accumulated losses have exceeded 50% of the net worth of the company.
“It would be worse had the company, not window dressed its accounts,” Justice KR Sriram, had said while giving his order.
In 2009, Nimbus had won the media rights from the BCCI at Rs 2,000 crore spread over seven years. The UBI was one of the banks which gave a short-term loan and bank guarantee. As Nimbus could not fulfill its payment commitments, BCCI called off the contract and invoked the bank guarantees.
The court observed that the company’s financial status is “absolutely precarious”. The court has asked the official liquidator to attach the properties of Nimbus.
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