Debt-ridden Vishal Retail is holding a joint lenders’ meeting on May 4.
The meeting is being held to get the corporate debt restructuring (CDR) cell members, the company and Texas Pacific Group (TPG) on board with the CDR package and oversee its implementation.
A formal letter approving the CDR package was sent to the company recently. “Arguments are going on over the letter. All stakeholders — the CDR cell members and the non-CDR members — should get their due. We are in talks for that,” said Vishal Retail Chairman Ram Chandra Agarwal. On whether or not he is going to sign the TPG deal Agarwal said: “I will see. There will be clarity on this matter in a month’s time.”
Agarwal did not comment on the issue of whether he would give a personal guarantee to the lenders against the recovery of loans. He said that other investors had also shown interest in the company whose names he did not reveal.
Vishal Retail had gone for CDR last November. The TPG, a private equity fund, is said to be keen on taking over the assets of Vishal, with an investment of Rs 250 crore.
One of the lender banks had demanded forensic audit of thecompany’s books, which has not taken place. Business Standard reported earlier that the company’s auditor Haribhakti and Company had said the retail company had overstated profits and under-reported losses.
The company had opted for CDR last November, with six banks joining the process. It has a total debt of Rs 730 crore, with non-CDR lenders accounting for Rs 260 crore.
