Reid & Taylor, a fashion brand once endorsed by superstar Amitabh Bachchan, and its parent company S.Kumars Nationwide, are headed for the bankruptcy courts after they defaulted on more than Rs 5,000 crore of loans, two senior officials told ET.
Nitin Kasliwal, promoter of S.Kumars Nationwide, is declared a wilful defaulter by most lenders and will thus not be eligible to participate in the resolution plan.
IDBI Bank has initiated insolvency proceedings against S. Kumars Nationwide, while EdelweissBSE 0.10 % Asset Reconstruction Company has dragged Reid & Taylor (India) to insolvency court.
“Lenders are looking at a comprehensive debt restructuring package for both companies since Reid & Taylor has synergies with S. Kumars Nationwide,” said a senior official cited above. “Therefore, it is decided to appoint the same resolution professional for both the companies,” he added.
To the National Company Law Tribunal (NCLT), lenders have suggested Abhay Manudhane as the resolution professional who would oversee the bankruptcy proceedings at both companies.