Kolkata, March 5 Titagarh Rail Systems Ltd (TRSL) announced on Thursday that its Italian associate, Titagarh Firema SpA, has completed the sale of its business unit to the Italian government-owned Fabbrica Italiana Treni S.p.A for a net consideration of 66.09 million EUR.
This strategic divestment is aimed at stemming the financial drain on the Indian parent company, as Firema had been incurring substantial losses despite repeated cash infusions from TRSL over the last few years.
In a regulatory filing, the Kolkata-based railway major stated that the proceeds from the sale have been utilized to settle payments for Firema’s secured and unsecured creditors. This settlement was conducted under the CNC (Composizione Negoziata della Crisi) — a negotiated crisis settlement framework — under the supervision of the Court of Naples.
Vice Chairman and MD Umesh Chowdhary told