Industry

IRP invites expression of interest for RTIL

The premium cloth maker has debt of ₹3,800 crore

The National Company Law Tribunal (NCLT)-appointed Interim Resolution Professional (IRP) for financially restructuring debt-ridden RTIL Ltd., formerly Reid & Taylor, has invited ‘Expression of Interest’ (EoI) from prospective lenders and investors for submission of ‘resolution plan’ as per provisions of the Insolvency and Bankruptcy Code (IBC).

RTIL Ltd., with a debt of ₹3,800 crore currently, is an integrated premium clothing provider that manufactures and sells Reid & Taylor fashion brand in India under licence. With a manufacturing facility in Karnataka, the company caters to premium and super premium segments of the Indian garment market. As per IRP’s notice, bids need to be submitted by June 30, 2018. The applicant needs to have a consolidated net worth of ₹50 crore at the group level as on or after March 31, 2017.

Net worth

The bidder should also have total assets under management/loan portfolio of at least ₹250 crore. Consortium investors with aggregate net worth of ₹50 crore can also apply. In a recent order, NCLT, while admitting a petition filed by Edelweiss Asset Reconstruction Company (ARC), noted that RTIL had defaulted in repaying the loan availed from its lenders. Edelweiss ARC is an assignee of debts by Export Import Bank of India, which had sought insolvency resolution process of RTIL.

The NCLT has also restrained the company from transferring, encumbering, alienating or disposing of any of its assets or any legal right or beneficial interest therein until the case of insolvency is decided.

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Printable version | Mar 23, 2020 3:30:35 AM | https://www.thehindu.com/business/Industry/irp-invites-expression-of-interest-for-rtil/article24165628.ece

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