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arvind: Arvind, Donear, 10 others in race to buy Bombay Rayon

Lalbhai group promoted Arvind, entities of the Donear, Welspun and JM Financial are among a dozen suiters to acquire textile maker Bombay Rayon Fashion, which is undergoing insolvency proceedings.

Bidders of Bombay Rayon have a choice to bid for all 10 company assets or select assets.

Donear Group’s GBTL has bid for all assets, while Arvind has bid for all categories except equity of BRFL Textile, according to a list of applicants disclosed by resolution professional Satish Kumar Gupta on the company’s website. Welspun’s Nakoda Cotton Industries submitted EoI for all categories except equity and bonds of BRFL Textile.

JM Financial Asset Reconstruction Company of JM Financial Properties has submitted expressions of interest for all categories. JM Financial ARC also holds 91% of the financial creditors claims, while the remaining 9% is held by Axis Bank. The other applicants that submitted EoI include Rashmi Metaliks, Khandwala Finstocks, Linen Arts and Dev Land & Housing.

The RP has admitted liabilities of ‘7,234 crore, which includes ‘6,690 crore in financial dues.

Last June, the Mumbai bench of the National Company Law Tribunal (NCLT) admitted the company for corporate insolvency at the behest of a plea filed by Vikash Parasprampuria of Chiranjilal Yarn Traders against the textile maker.

Subsequently, Prashant Agrawal, the company’s suspended board member, appealed the ruling at the National Company Law Appellate Tribunal (NCLAT). The appellate tribunal also upheld the tribunal’s order on July 15, 2022.Janardhan Agrawal promoted Bombay Rayon has textile-making units in Maharashtra, Bengaluru, Kerala, and Indore. The promoters failed to repay loans under corporate debt restructuring scheme, following which several unsuccessful attempts were made to recast the loans, said people with knowledge.

The company reported ’83 crore in revenue and a loss of ‘1,147 crore during FY22, as per the disclosure at the exchange.

Since the inception of the Insolvency & Bankruptcy Code, several textile and clothing brands – including Digjam, Alok Industries, Reid & Taylor India, S Kumars Nationwide, Mandhana Industries and Provogue have been referred for debt resolution.

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