Bombay Dyeing & Manufacturing Co today said its proposed sale of a textiles processing unit at Ranjangaon in Maharashtra for Rs 230 crore to Oasis Procon stands cancelled due to failure of the latter to make required payments on time.
The company's board in May this year approved selling of its textiles processing unit at MIDC Industrial Area, Ranjangaon on a slump sale basis to New Delhi-based Oasis Procon Pvt Ltd.
As per the terms and conditions reflected in the term sheet, Oasis Procon was obliged to complete the proposed transaction not later than July 31, 2015, Bombay Dyeing & Manufacturing said in a BSE filing.
"The proposed purchaser failed to consummate the proposed transaction and make the requisite payments and therefore the earnest money of Rs 25 lakh was forfeited by the company in accordance with the terms provided in the term sheet and accordingly the term sheet stands automatically cancelled," it added.
The company had planned to utilise the proceeds to repay existing loans and reduce interest burden, among other business purposes.
The sale was however subject to shareholders' approval and other customary closing conditions including technical, financial and legal due diligence. It had received shareholders' nod in June this year.
As a term of the sale, the company had agreed not to directly and/or indirectly engage in export of bed linen/bed linen fabric to the US for a period of five years from the closing date.
