Kolkata-based jewellery manufacturer and exporter Shree Ganesh Jewellery House Ltd has approached country’s largest lender State Bank of India (SBI) for corporate debt restructuring (CDR), as per a stock market disclosure. Its lenders will meet on December 20 to discuss the CDR proposal.
“The company has approached SBI, the lead bank of the consortium for referring the matter to corporate debt restructuring cell for CDR of its debts,” the company said in the filing.
CDR is a mechanism which permits viable companies additional time to meet debt obligations, subject to certain terms and conditions, besides providing a runway for restructuring of the debt.
Founded in 1992, Shree Ganesh Jewellery went public in 2010 when Credit Suisse PE part exited. Credit Suisse PE currently holds a 4.94 per cent stake in the company.
The firm has been engaged in trading and manufacturing & export of handcrafted/machine-made plain & studded gold jewellery and diamond jewellery over the last five decades. The company markets its jewellery products under the brand name, ‘GAJA’.
During the quarter July-Sept 2012, through its Dubai-based arm Shree Ganesh FZE, the company entered into a gold purchase agreement. However, ambiguities in regulatory policies did not allow the company to make the contract due to which it had a loss during this year. In the last two years, it also undertook sales of diamond jewellery by long-term creditors but it couldn’t sell due to the slowdown in demand. So, it had to buy back the jewellery and deliver them to its creditors and suffered a huge loss as the creditors demanded for a discount.
(Edited by Joby Puthuparampil Johnson)