Trouble-hit C&A Textiles has announced plan to resume full-fledged production after the upcoming Eid-ul-Adha.
The listed firm which had been in a more than four-year hiatus from 2017 to Mid-2022 due to loan defaults by its former owners, restarted the textile production earlier in June last year.
The company after this Eid festival will resume the operation at the remaining garment unit, which will bring it again into full production after 2017.
The company in a disclosure filed with the Dhaka Stock Exchange (DSE) on Wednesday said it already completed commissioning and testing of all machines for both garment and textile divisions and also completed the trial production.
The bulk production of both units would start after Eid-ul-Adha, it added.
Moreover, the company has also received approval from the court to hold its annual general meeting (AGM) for the calendar years 2017 to 2022.
Within 8 weeks from the date of drawing up this judgment and order, the time, date, and place of the pending AGMs will duly be informed later, the DSE filing read.
After nearly a five-year hiatus, the troubled C&A Textiles had geared up to resume manufacturing in the early last year as it that time got all utility connections – gas, electricity and water – restored.
The company previously in 2017 was forced to be shut due to loan defaults by its former owners.
Before that, the company had cleared its longstanding dues because Alif Group saved it by investing Tk 50 crore as a share money deposit.
The Bangladesh Securities and Exchange Commission (BSEC) in October 2021, had allowed Alif Group to acquire C&A Textiles tagging some conditions.
Following the regulatory approval, Alif Group, stepped forward to salvage the textile mill by investing Tk 50 crore as share money deposit.
Even after the acquisition, the trouble-hit company had been facing setbacks to restart the full-fledged production because of several difficulties and a lack of the required equipment and machinery.
C&A Textiles raised Tk 45 crore through an initial public offering (IPOs) in 2015.
Less than a year after it was listed on the stock market, its manufacturing was stopped in 2017 as a result of loan fraud by its previous owners.
The facility is currently being expanded by the new owner, Alif Group, to boost its manufacturing capacity, several sources at the company said. The company was incorporated
in 2001.
The BSEC in July 2020, had unearthed that Bangladesh Shoes Industries Limited Director Sharmin Akther Lovely, and C&A Textiles’ Managing Director Rukshana Morshed had together sold approximately 1.22 million shares from the listed company without taking prior regulatory approval.
Thus, they pocketed Tk 12 crore.
The regulator later penalised them Tk 19 crore and prohibited them from holding directorship at any other listed companies as punishment for breaching securities laws.
Currently, C&A Textiles’ sponsor-directors hold 22.14 per cent of the company’s shares.
The company has a paid-up capital of Tk 239.31 crore.
