Dynamatic Technologies Limited updates on Eisenwerk Erla GmbH

Dynamatic Technologies Limited's stepdown subsidiary Eisenwerk Erla GmbH (EEL) had applied for the "protective shield process" under German Laws. Considering the various challenges due to the ongoing Ukraine conflict and resultant inflation and supply chain crisis in Europe and more specifically Germany, and the steep and unpredictable increase in the cost of gas and electricity, EEL, based on professional advice from experts, initiated the aforesaid corporate protective measures.

During this process, the business operations of Eisenwerk Erla GmbH were not impacted and continued without any restriction, and most of the customers supported EEL by agreeing to corrective price adjustments before the competent local court of Chemnitz. An administrator was commissioned to draw up the resolution plan, and in three months, the management of EEL and the administrator were able to draw up a resolution plan and present it to the creditors, which was accepted by the court. We have now received communication from our counterparts in Germany that the date for successful closure of the proceedings has been announced by the court for 3lst July 2023.

The Company is also implementing its transition plan to build up a further line of business for the manufacture of components for aircraft applications at the EEL site in addition to the existing production.

Shares of Dynamatic Technologies Limited was last trading in BSE at Rs. 3762.65 as compared to the previous close of Rs. 3684.40. The total number of shares traded during the day was 1702 in over 497 trades.

The stock hit an intraday high of Rs. 3801.20 and intraday low of 3680.90. The net turnover during the day was Rs. 6429629.00.

Source : Equity Bulls

Keywords

DynamaticTechnologies INE221B01012 EisenwerkErlaGmbH