HMT Chinar Watches gets shareholders' nod for voluntary liquidation

HMT Chinar Watches, which was cleared for closure by the government, Monday received shareholders' approval for voluntary liquidation of the company, HMT Ltd said in a regulatory filing to the exchanges. At an extraordinary general meeting, the shareholders of HMT Ltd's arm also cleared the appointment of insolvency professional Akhilesh Kumar Gupta as liquidator, which was also approved by the creditors in the meeting, it said.

The Cabinet Committee on Economic Affairs had in January 2016 approved the closure of three subsidiary companies of HMT Ltd -- HMT Watches, HMT Chinar Watches and HMT Bearings. At the time, the Chinar unit, with 31 employees, had a defunct factory at Srinagar in Kashmir and an assembly unit at Jammu, while the bearing arm had 56 employees.

"The voluntary liquidation proceedings in respect of HMT Chinar Watches Limited shall be deemed to have commenced from the date of shareholders' approval i.e. March 25, 2019," the filing said.