On 27 September 2013, Carnation Auto India Private Limited took a loan from Punjab National Bank (PNB). Of Rs 105.75 crore. Sometime in April of 2015, the company started defaulting on its payments. As of March 2016, the company owed PNB close to Rs 116 crore. Rs 105 crore principal, Rs 5 crore in unpaid interest and Rs 6 crore in interest provision. This wasn’t the only default. Carnation had been running on fumes for a while, and for whatever little miracle it was hoping for, it had issued convertible debentures to IFCI Venture Capital Fund.
Glass half empty
Carnation for clunkers
Try as hard as they have, Jagdish Khattar and his sons, Gautam and Kunal, haven’t been able to swing the turnaround they were hoping for
Earlier last week, Carnation Auto entered the insolvency & bankruptcy code process
Carnation owes around Rs 200 crore to its creditors. Primary among them, Punjab National Bank
Carnation Auto has a negative net worth and total accumulated losses of about Rs 330 crore
After eight years of being in business and many, many pivots, Jagdish Khattar still believes Carnation is a turnaround story