New management of Shurwid Industries Ltd after the takeover of the company by Eurodesh Consumers Products has so far failed to pay loans amounting to around Tk 13 crore to NRB Bank and United Finance.
As per an agreement between the new management and the former management of the company signed on August 5 last year, all the dues, debts and liabilities of Shurwid, as per updated company’s records including NRB Bank and United Finance loans, will be taken over by the new management.
The Dhaka Stock Exchange on March 12 asked the listed company to clarify by March 18 its position on the allegation brought against the new management of the company by former directors of the company.
On February 6 this year, the High Court allowed Eurodesh Consumer Products management to take over Shurwid and asked it to hold the pending annual general meeting of the company by May 31, 2018.
The new management was approved by the shareholders of the company on October 5 last year.
The former management of the company claimed that the new management was not paying the banks’ loans and was not taking no objection certificate from NRB Bank even after six months of signing the agreement.
They also said that Eurodesh managing director and Shurwid chairman Mahmudul Hasan was the same person.
Hasan has been holding around 40 lakhs shares of Shurwid under his name and his different institutions and the shares are not under lock-in that may facilitate him to run away amid selling off the whole shares at any time, they said.
On February 14, NRB Bank sent a letter to the company saying that ‘the authority of the bank approved a credit facility of Tk 12.21 crore in favour of Shurwid Industries, which subsequently availed by you.’
The company under the previous management made a commitment to deposit required payment to regularise the classified accounts within September 30, 2017 towards getting NOC from the bank that remained unaddressed, the NBR Bank’s letter said.
‘The bank will be constrained to initiate appropriate legal action if the company fails to adjust the entire liability,’ said the letter.
United Finance on February 20 sent the final notice to the company demanding Tk 1.42 crore.
The letter also said ‘because of the failure to make the payment, we, as per the terms and conditions of the agreement, hereby terminate the agreement and demand the mentioned amount.’
The non-bank financial institution also threatened the company that if it failed to make the payment by March 14, it would take shelter of law by filling suit against the company in the proper court as per relevant law of the country.
The former management requested the new management few times in February to adjust the loan liability of NRB Bank and United Finance and take the NOC from NRB and United Finance to safeguard the interest of shareholders.
If either party fails to fulfil any of its contractual obligations in terms of agreement will breach the contract and therefore perilous action will be taken against the breaching party, according to the contract between the two parties.
Shurwid Industries chairman Mahmudul Hasan said that the auditor could not find the utilisation of the loan amount taken by the former management.
‘We, however, started to provide the loans to the companies concerned. We have already given Tk 23 lakh to NRB Bank in last three months.’
Hasan also said that the new management was trying to revive the company.
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