“The Lilliput staff would be holding a peaceful protest outside the premises of China Trust Bank office in New Delhi. The coercion & harassment faced by Lilliput Kidswear at the hands of China Trust Bank leaves us with no resort but to voice our plight & concerns, albeit in a peaceful manner,” employees said in a statement.
Sanjay Narula, chief executive of Lilliput, said the Taiwanese lender had never co-operated and had been trying to forcefully liquidate the company, though being the unsecured lender, it would not gain anything from this.
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“All Indian lenders, led by Allahabad Bank, are co-operating to ensure that the company operates. They have given us a moratorium and additional loans for operations. Lilliput has been working according to the terms and conditions set by the lenders. As China Trust Bank has been harassing us, even other lenders have moved court. There is another case going on between Lilliput and China Trust Bank,” said Narula.
China Trust Bank could not be reached for comments.
Last year, China Trust Bank had moved the Delhi High Court for failing to repay a working capital loan of Rs 15 crore.
Tata Capital had also filed a winding up petition against the company last year.