Home ›› 19 Nov 2021 ›› Stock
Bangladesh Export Processing Zone Authority (BEPZA) is going to auction the factory building and equipment of Mithun Knitting and Dyeing Ltd which has been closed since February 2019.
The publicly traded company informed Dhaka Stock Exchange (DSE) on Thursday, saying that they have received a letter from BEPZA in this regard.
According to the letter, the BEPZA issued an auction notice to sell the factory building, machinery and all other assets of the company for realizing outstanding dues payable to the workers, BEPZA and customs authorities.
And issuance of letter of acceptance to the successful bidder after approval of the concerned authority is in under process, it added.
Earlier in September, 2019, Chittagong Export Processing Zone (CEPZ) authorities had disconnected gas and electricity connections to Mithun Knitting due to arrears of utility bills.
In October, 2016, the European Buyers' Alliance, Accord on Fire Safety in Bangladesh severed ties with Mithun Knitting as a punitive measure due to unsatisfactory progress in factory renovations.
Since then, the company has been under business pressure due to non-receipt of purchase orders at the desired rate. The company incurred a loss Tk 5.96 crore in the financial year 2016-17.
Despite being out of production, the company's share price has been on upward trend since July this year. It has been reported that a vested group is manipulating the company’s share price.
Its share price increased 132 per cent to Tk24.4 from July to September.
In the face of the abnormal price hike, the Dhaka Stock Exchange (DSE) asked the company authorities about its regular function and the status of production and business activities.
The company answered that its production and business activities had been suspended since the cancellation of the BEPZA lease agreement on February 26, 2019.
