Nathella Sampath Jewellery to be liquidated following NCLT ruling
today Jan 22, 2020
Nathella Sampath Jewellery faces liquidation following a ruling by the National Company Law Tribunal. The fine jewellery business had originally shut its stores in 2017.
The NCLT recently ordered the liquidation of Nathella Sampath Jewellery after the business itself had filed a voluntary petition for insolvency in May, 2018, TNN reported. The NCLT appointed Ram Ratan Kanoongo as resolution professional, who voiced that it was challenging to find a way to revive the brand and the lenders voted for liquidation at an overwhelming 97.9%.
“The deadline of 330 days expired in November 2019, but there are multiple proceedings pending,” said Kanoongo in a statement, TNN reported. “We were hence constrained to call for liquidation.”
Until a liquidation professional is appointed, Kanoongo will act as such.
The jewellery brand owes a total of Rs 461.4 crore ($69.4 million) to a group of 62 operational creditors and 58 financial creditors. The business also owes Rs 63.7 crore which it had taken as advance payments for jewellery from its customers, one of whom made a Facebook group for those “cheated” by the business.
Before the NCLT ordered the liquidation, the business was also investigated by the Enforcement Directorate which attached Rs 328 crore worth of its assets under the the Prevention of Money Laundering Act. The PMLA proceedings will continue independent of the liquidation order.
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