Commerzbank AG has withdrawn its appeal against the scheme of arrangement by Arvind Mills with the creditors of the company.
In an intimation to the Bombay Stock Exchange, Arvind Mills said "the appeal filed by Commerzbank AG, against the sanction of the Scheme of Arrangement with the creditors of the company has been withdrawn".
In a related development, Supreme Court of India has quashed the criminal complaint filed by Commerzbank AG, against the company and its certain directors and officers.
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Reacting to the development a company spokesperson said, " The withdrawal of the suit puts all issues involved in the restructuring behind us. While the restructuring of the company was through, certain irritants remained which have finally been resolved."
"It is one more milestone in Arvind Mills comeback, which is certainly good news for the company, " he added.
Arvind Mills had experienced a financial crisis on account of the down turn in the denim industry. The company which owed 85 lenders across the globe Rs 2,700 crore, went in for a debt restructuring scheme on the advice of Jardine Fleming.
The investment bankers suggested that those lenders immediately opting to buy-back their debt would have to do so at a 55 per cent discount, those willing to do so over a period of three years would have to take a 50 per cent hit and those willing to wait out five years, a 40 per cent discount.
Ninety-four per cent of the lenders (85 lenders across the globe) approved of the restructuring scheme. However certain creditors opposed the scheme which led to the litigation over the scheme of arrangement despite it being passed and approved by the necessary majority as required by the court.