The compromise suggestion with creditors offered for settling the Subhiksha Trading Services imbroglio isn’t going to be decided quickly.
For one thing, Subhiksha says it can offer the needed funding, of Rs 250 crore, only after the court okays its proposed merger with Chennai-based Blue Green Construction, already a contentious issue. For another, some of the creditors say they don’t agree with the scheme; Kotak Bank, ICICI Ventures and Zash Investments have told the court they have various objections.
Accordingly, the court decided on Thursday to defer the hearing on the issue. It wants first to focus on the amalgamation scheme with Blue Green.
The compromise formula with its various creditors was offered by the cash-strapped retail chain through its subsidiary, Cash and Carry Wholesale Traders Pvt Ltd. According to the scheme, secured creditors should settle for half the principal amount taken from October 2008 and the remaining amount will be paid in installments after a while. For the unsecured lenders, the company would start repaying the principal amount from January to December 2011.