BackNCLT admits insolvency petition against apparel brand Provogue
Provogue, once represented by actors Hrithik Roshan and Sonakshi Sinha, posted a loss of 154 crore in 2017-18
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Mumbai: The Mumbai bench of the National Company Law Tribunal admitted Provogue (India) Ltd for insolvency resolution on Thursday, making it the fourth company from the textile and garment sector to attempt loan resolution in bankruptcy courts.
Reid & Taylor India Ltd, Mandhana Industries and Alok Industries Ltd are already in various stages of insolvency resolution.
State-run Andhra Bank, which filed the insolvency petition before the Mumbai bench of the National Company Law Tribunal (NCLT), has claimed dues of ₹ 90 crore.
Its total debt to all lenders add up to ₹ 228 crore.
Other lenders include IndusInd Bank, Corporation Bank, Punjab National Bank and SIDBI.
The company, once represented by Bollywood actors Fardeen Khan, Hrithik Roshan and Sonakshi Sinha, posted a loss of ₹ 154 crore on sales of ₹ 91 crore in 2017-18.
A division bench of Bhaskara Pantula Mohan and V. Nallasenapathy admitted the company for the corporate insolvency resolution process (CIRP) and approved the name of Jitendra Kumar Yadav as resolution professional.
“There is an admitted debt by Provogue and the company’s account was declared a non-performing asset (NPA) in July 2017," said Rohan Agrawal, counsel for Andhra Bank. “The petition deserves to be admitted."
Provogue’s promoters— Nikhil and Akhil Chaturvedi— lost control of the company in 2016 after a group of lenders led by Andhra Bank acquired 51% in the company, exchanging debt for equity.
“It’s too early to say anything but I am looking forward to a faster resolution in the case," said Yadav, when contacted.
Nishit Dhruva, managing partner of law firm MDP and Partners, who was advising Andhra Bank in the case, said the company is keen on a revival and the lenders are hoping for quick resolution due to good brand recall.
Launched in 1998, Provogue was primarily a menswear fashion brand.
At its peak in 2011, the company had 350 stores in 73 cities.
The company had also expanded from menswear to womenswear and in accessories, including watches, footwear and sunglasses.
Provogue has its own garment manufacturing facilities in Daman and in Baddi, Himachal Pradesh.
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