CG Power asks Belgium Unit to prevent bankruptcy

The board of directors of CG Power and Industrial Solutions have directed the board of its Belgium business — CG Power Sytems Belgium NV — to take protective measures to prevent it from possible bankruptcy and liquidation as it suffered from paucity of funds and closure of bank accounts.

On November 12, in notes to the un-audited management compiled consolidated financial information, the company said that its subsidiaries in Belgium and Hungary have been severely affected due to paucity of funds, and in Belgium, certain bank accounts have been blocked. To this effect, the parent board has directed the Board at Belgium — CG Power Sytems Belgium NV and CG Holdings Belgium NV and its management — to initiate appropriate action including any protection measures in discussion with various stakeholders including employees.

CG Power board had said, “Should such events occur, the going concern of these businesses could be affected.