Shares of ProvogueNSE -9.20 % (India) fell 8% after Andhra BankNSE -2.38 % 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 BankNSE -1.59 %, Punjab National BankNSE -2.10 % 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.
