Gujarat co may invest to support Reid & Taylor staff union

Mumbai, Jan 15 (IANS) A Gujarat-based company has been proposed as a new investor to support the employees' association of the beleaguered Reid and Taylor after a Hong Kong group failed to honour its commitment for depositing its promised earnest deposit money before the National Company Law Tribunal (NCLT) here on Tuesday.

The NCLT has asked the CFM Asset Reconstruction Pvt Ltd (CFMARPL), Gujarat, to deposit Rs 2 crore within 48 hours and another Rs 3 crore with the resolution professional, and posted the matter for further hearing on January 17.

The NCLT has assured that after they provide the initial amount (Rs 2 crore), the resolution professional would be directed to provide the necessary documents of the company to enable them (CFMARPL) prepare a resolution plan.

CFMARPL CEO S.V. Shah said the company has a net worth of over Rs 100 crore besides managing assets of around Rs 1,200 crore.

Incidentally, SPGP Holdings, Hong Kong, which had claimed a net worth of Rs 70 crore was later calculated by the resolution professional to around Rs 7 crore only.

Last December, the creditors' committee had moved the NCLT for liquidation of the Reid & Taylor as there were no credible investors ready to submit a resolution plan for the debt-hit fashion brand.

However, the employees' association, backed by SGPF Holdings, has requested the NCLT for an opportunity to help bail out the company by submitting a resolution plan.

The NCLT, presided over by B.P. Mohan and V. Nallasenapathy, had stalled the liquidation process by giving an extra 11 days time for the corporate insolvency resolution process after the 270-day time period for a resolution proposal of the company ended.

(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)