Andhra Bank files bankruptcy petition against Provogue
A sum of Rs 305.35 crore was payable to lenders who restructured debt as of January 25, 2016, according to Provogue's annual report for FY17.
Sangita Mehta
MUMBAI: Shares of Provogue (India) fell 8% after Andhra Bank dragged the apparel retailer to the bankruptcy court for non-payment of dues.
The promoters, Chaturvedi family, lost control of the company after a group of lenders acquired a majority stake following non-payment of dues and debt restructuring. The group of lenders led by Andhra Bank acquired a 51% stake in Provogue by swapping debt into equity in 2016.
Andhra Bank is owed Rs 90 crore. Provogue's other lenders include Bank of India, IndusInd Bank, Corporation Bank, Punjab National Bank and Sidbi.
"It appears that the company is keen on revival and we are hopeful that a resolution will soon be put in place," said Nishit Dhruva, managing partner at MDP & Partners, Andhra Bank's legal counsel.
The total amount currently owed to all banks could not be immediately ascertained. A sum of Rs 305.35 crore was payable to lenders who restructured debt as of January 25, 2016, according to Provogue's annual report for FY17.
Provogue shares declined 8.2% to Rs 4.37 on the BSE on Thursday. The company reported a loss of Rs 155 crore in FY18 on revenue of Rs 91.7 crore.