Troubled wine-maker Indage Vintners has said the Corporate Debt Restructuring Cell (CDR) has approved its proposal to restructure the borrowings of various banks.

The proposal will allow the business to get inflow of funds from its promoters, while the lenders will allow the repayments and interest rates to match with the future cash flow of the business.

The company also said it believes this will facilitate the ongoing appeal in the winding up order passed against the company. The order has been stayed till April 28, 2010.

On March 19, an order passed by justice SJ Kathawalla directed Indage to wind up its operations because it was insolvent. According to the court?s findings, the company had net assets worth Rs 276 crore while its liabilities stood at Rs 400 crore, including the secured and unsecured lenders.

To this, the company filed an appeal on March 30, where it said that it was not insolvent and the winding up of operations would result in sufferings to its workers. Furthermore, the company said that it was in the process of restructuring debt to get back on the right track.

There were several unsecured creditors like Sublime Agro and Kotak Mahindra Bank who had filed winding-up petitions against Indage after it defaulted on payments. There was a demand by the creditors for the company to be liquidated and their dues to be recovered.

Indage Vintage shares on Thursday closed at Rs.39.50, up by 4.91%, on the Bombay Stock Exchange.