New Delhi: Beleaguered retail chain Subhiksha said on Wednesday that one of its shareholders -- Cash and Carry Wholesale Traders Pvt Ltd -- has filed a petition before the Madras High Court seeking a compromise between the company and its creditors.
It also added that the company hopes to resume operations in three-four months and its management is working with lenders on restructuring the firm.
The petition has been filed under Section 391 of the Companies Act.
“We have been informed and notified that Cash and Carry Wholesale Traders Pvt Ltd, the promoter of Blue Green Construction and Investment Ltd, into which we are merging has filed a Section 391 petition before the High Court,” Subhiksha Trading Services Ltd managing director R Subramanian said.
Section 391 of the Companies Act provides that the court may order a meeting of the company and its creditors to arrive at a consensus on any issue. He, however, refused to give details “as the matter is before the Courts”.
He was responding to reports that Subhiksha has itself filed a petition under Section 391 to arrive at a compromise with its stakeholders and creditors at a time when its corporate debt restructuring (CDR) exercise has not been culminated though the 31 July deadline is over.