Gokaldas Exports shares will remain in focus in Wednesday's trading session after disclosing that one of the customers of its step-down subsidiary has filed for bankruptcy protection under US laws.
Gokaldas Exports share price ended Monday's session on a weaker note, closing the day 3% down at ₹678 per share.
In an exchange filing, the company said The Children's Place Inc., a customer of Atraco Industrial Enterprise FZE, a step-down subsidiary of Gokaldas Exports, has sought protection under Chapter 11 of the US Bankruptcy Code.
"We wish to inform that ‘The Children's Place, Inc.’, one of the customers of Atraco Industrial Enterprise FZE, a step-down subsidiary of Gokaldas Exports Limited ("the Company"), has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States," the company said in the filing.
Gokaldas Exports said Atraco Industrial Enterprise FZE had outstanding receivables of $4.11 million from The Children's Place as of the date of the disclosure. The company added that it is closely monitoring the developments and assessing the potential impact on its business operations and financials. It will take appropriate steps to address the matter.