In a move that rings in hopes of a resurrection for debt-ridden RTIL (formerly Reid & Taylor (India) Ltd), a UK-based investor has joined the fray to bid for the firm, raising the total number of bidders to two. Earlier, the employees of RTIL had roped in Hong Kong-based SPGP Holdings (HK) Ltd as an investor.
The UK-based investor has also informed the Interim Resolution Professional (IRP), who, in turn, had communicated the matter to the Mumbai bench of the National Company Law Tribunal (NCLT). The new investor was to submit a resolution plan after the end of the holiday period, sources close to the development told BusinessLine .
The tribunal had also directed the IRP to “maintain regular contact” with the new investor and exchange necessary details as under the Insolvency and Bankruptcy Code (IBC). This is if the investor satisfies eligibility criteria, the source added.
The source, however, did not disclose the name of the new investor citing confidentiality clauses and “competition”.
Stay on liquidation
Earlier this week, an association — formed by the employees of RTIL to scout for potential investors and revive the firm — had secured a stay on the liquidation process. The tribunal, which heard a December 19 petition filed by the Association of Persons (AOP) on January 1, had put the liquidation proceedings on hold till the disposal of the application.
The stay followed a plea by the AOP (under Income Tax Act, 1961, is an integration of two or more persons for a common purpose), which also brought in SPGP Holdings as an investor.
SPGP Holdings, which has readied a corpus of $250 million, is committing to invest in RTIL by way of equity or debt, while the exact amount to be invested will be decided only after a due diligence process.
Saddled with debt
RTIL, a premium clothing provider that sells under the international brand ‘Reid & Taylor’ in India, is struggling to pay off its ₹3,800-crore debt. It still runs a factory with about 30-40 per cent production capacity in Mysuru, and employs about 1,200 personnel and another 200-250 contract labourers. It also has about 1,000-1,500 dealers across the country.
Its apparel range of Reid & Taylor was earlier endorsed by actors Amitabh Bachchan and Pierce Brosnan.