Celebrity Fashions Ltd (CFL) has announced a restructuring scheme, which includes demerger of domestic business into Indian Terrain Fashion Ltd and transfer of bottoms division of exports to Celebrity Clothing Ltd (CCL) by way of slump sale on a going-concern basis.
The scheme was approved by the board of directors at its meeting held on March 3, the company informed the Bombay Stock Exchange.
The restructuring would be in accordance with the Scheme of Arrangement under Sections 391-394 of the Companies Act, 1956, and subject to necessary approvals of Madras High Court, shareholders, creditors and others.
The company has proposed to fair value its assets as on March 31, 2010, among others.
Advisers to the proposed restructuring are SBI Capital Markets Ltd, Mumbai, and PriceWaterhouse Coopers Pvt Ltd, it said.
CFL, a Chennai-based Rs 250 crore company, is in the business of manufacturing and exporting ready-made garments. The company has its pan-India presence under the brand Indian Terrain. The exports division of CFL is divided into tops and bottom division.
