Chennai-based retail chain Subhiksha Trading Services has missed its deadline of July 31, 2009, for its corporate debt restructuring (CDR) programme.
When contacted by Business Standard, Subhiksha’s promoter R Subramanian said, “I do not want to comment at this stage...will make a formal announcement on Monday”. He added they were working with banks to close all issues and would make a formal announcement along with banks on Monday or Tuesday.
According to a senior bank representative, the proposal did not come to the core CDR group for approval and the process might extend for a month or two.
Other investors or bank officials including ICICI were not reachable. When contacted, MV Nair, chariman of Indian Banks Association, which is part of the core group, said he was not aware of the development and was not part of the process.
The financial package is being processed under CDR of the Reserve Bank of India by 12 of the 13 consortium members led by ICICI Bank.
The deadline for the scheme was July 31, 2009. One of the consortium members Kotak Mahindra Bank, to which Subhiksha owes Rs 40 crore, has withdrawn from the process.
Subhiksha, it may be recalled, had asked for a debt restructuring of Rs 300 crore.
