Nagarjuna Fertilizers and Chemicals Limited (NFCL) has issued a clarification regarding its financial status, stating it is not a going concern following the sale of its assets. The company referenced its previous disclosure dated July 12, 2024, concerning the sale of assets. NFCL confirmed that it is not aware of the plans or activities of the current owners of the disposed assets. The company also stated that negotiations for asset sale are not applicable, and it is not aware of any unannounced information that could explain trading movements. Furthermore, there are no pending regulatory or legal proceedings to report. As previously disclosed on July 12, 2024, NFCL had completed the sale of its core assets (Urea and MI facilities) and non-core assets, realizing ₹1685 crores and ₹200 crores, respectively, totaling ₹1885 crores. This amount was used to settle the outstanding debt of ₹3858 crores claimed by Assets Care and Reconstruction Enterprise Limited (ACRE), the secured creditor, as of December 10, 2023. ACRE issued a No Due Certificate on July 11, 2024, confirming NFCL's release from all liabilities, dues, demands, or claims related to the outstanding debt and releasing all securities, personal guarantees, and pledged shares held by the promoter. Consequently, NFCL has no term loans or working capital debt outstanding and is not in default with any secured lenders. The company mentioned that a majority of its staff have moved on due to better prospects after the asset sale. NFCL is currently working on subsidy and energy reimbursement claims with the government, and upon receipt, any remaining dues will be settled. Additionally, the company is exploring a urea production arrangement with the Government and AM Green Ammonia (India) Private Limited for a certain period.
