Shares of Hindustan Motors was down 10% at Rs 12 after the Company has declared suspension of work at its Uttarpara Plant with effect from 6.00 AM of May 24, 2014.
The stock has hit high of Rs13 and a low of Rs11.
The Company has been transparent in sharing updates about the worsening conditions at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product the Ambassador and large accumulation of liabilities. Given the present circumstances it has no alternative but to declare a suspension of work at its Uttarpara Plant till further notice.
The suspension of work will enable the Company in restricting mounting liabilities and restructure its organisation and finances and bring in a situation conducive to reopening of the plant.
No comments:
Post a Comment