1. Will be out of woods soon, USL assures shareholders

Will be out of woods soon, USL assures shareholders

Diageo-controlled United Spirits (USL) has told shareholders it expects to come out soon...

By: | Bengaluru | Published: November 8, 2014 12:09 AM

Diageo-controlled United Spirits (USL) has told shareholders it expects to come out soon of its present position of a “potentially sick” company through a series of steps, including exclusive licensing agreements with Diageo brands and increasing in-house production capacities at subsidiary companies. USL’s write-offs and provisions during FY14 led to an erosion of more than 50% of the company’s peak net worth during the past four years, requiring it to report to the Board for Industrial and Financial Reconstruction (BIFR).

The company will seek shareholder approval to pass a resolution on the erosion in net worth during an EGM on November 28.

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