Thursday 21 May 2009 - All stories compiled and edited by Bhaswati Das
Subhiksha Trading Services Ltd is blocking access to its latest financial statements, claimed some lenders who have lent money to the retailer.
The claim was first made months ago by ICICI Venture Funds Management Co, the largest investor in the retail chain that shut its roughly 1,600 stores, and is trying to work out a corporate debt restructuring, or CDR, package with the lenders.
A consortium of around a dozen banks, among the largest lenders to Subhiksha with a combined debt exposure of around Rs 600 crore, has hired audit and consulting firm, Ernst and Young to look at the retailer’s books. The audit firm declined to comment on the issue.
The consortium, which includes ICICI Bank Ltd, HDFC Bank Ltd and Yes Bank Ltd, is working on the CDR package that will infuse fresh funds into the company to help it get back on its feet. The consortium requires financial details, but two executives from two of these banks and another senior executive from a bank, which is a lender to the retain chain, but not part of the consortium, said Subhiksha is not sharing its accounts and other relevant details with the new auditor.
News & Resources