Home ›› 29 Mar 2022 ›› Stock
C&A Textiles Limited says it will get gas reconnection as it paid over Tk 2.89 crore in dues to the natural gas distribution company.
“Karnaphuli Gas Distribution Company Limited (KGDCL) has approved the re-connection of the gas line of the company after full payment of previous bills,” said the company in a filing with the Dhaka Stock Exchange on Monday.
All other utility connection such as electricity and water of the factory has been re-connected after full payment of past dues, it said.
In October 2021, the Bangladesh Securities and Exchange Commission allowed Alif Group to acquire C&A Textiles tagging several conditions, including immediate resuming production of the ailing company, and taking over the liabilities.
The production of the scam-hit company remained suspended for six years before Alif Group came in to take over the management of the company.
“Now, it’s easier to go into production,” C&A Textiles Company Secretary Azimul Islam told The Business Post.
On Monday, shares of C&A Textiles rose 4.67 per cent to Tk 11.20 on the DSE.
In March 2021, the BSEC had restructured the board of C&A Textiles to protect the interest of general shareholders as the company was non-performing for a long period. Additional Secretary Narayan Chandra Debnath has been serving as the chairman of the directors’ board of C&A Textiles.
According to an executive of the company, the company’s factory in the BSCIC estate in Chattogram closed down in 2016. By 2021, the company’s loans stood at over Tk 250 crore, including interests and other debts.
In February this year, C&A Textiles said it will issue new shares to the incoming management to inject funds into the company.
The board decided to raise Tk 50 crore in capital through the issuance of new shares to the incoming management as per the securities rules.
As per the condition of the securities regulator, the board also decided to deposit the required down payment to the bank to apply for rescheduling the total outstanding loan of C&A Textiles, according to the filing.
At a news conference in November last year, Alif Group had said that C&A Textiles would go into production from January 2022. However, the company has made no headway since the announcement. C&A Textile was dissolved its previous board and a new board was formed on September 9, 2021.
Alif Group has two companies listed on the stock exchange. One is Alif Industries and the other is Alif Manufacturing. To bring the company from the brink, the BSEC restructured the company’s board in March last year.
C&A Textiles paid dividends only once in 2016 after listing in 2015. The previous management was allegedly involved in irregularities for which the BSEC punished. Previously, Alif Group bought CMC Kamal Textile and Sajeeb Industries.
In 2020, C&A Textiles Managing Director Rukshana Morshed was arrested in Chattogram in a case filed over a defaulted loan.
