Winsome Yarns: Resolution Plan Approved; Existing Equity Reduced to 5%

Winsome Yarns Ltd has announced the approval of its Resolution Plan by the Hon'ble Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016. This plan extinguishes all pre-CIRP liabilities and releases company assets from all encumbrances, security, and liens upon settlement with financial creditors. The company's pre-CIRP net worth as of FY 2022-23 was a negative ₹40,897.33 Lakh. Post-CIRP, the company will continue as a going concern. Existing shareholders will see their equity written down significantly, retaining only a 5% stake on a pro rata basis, with no fresh equity issued to them. The Resolution Applicant will infuse ₹2.5 Crores for unpaid CIRP costs, receiving fresh equity share capital.