MUMBAI: The Bombay high court has ordered the liquidation of Nimbus Communications Ltd folowing a six-year-old lawsuit by the Union Bank of India (UBI) against the sports broadcaster, a report in newspaper Mint said.
“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 K.R. Sriram said in his order, the report said.
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 report said 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.
