Subhiksha MD denies filing petition in HC to seek compromise with creditors

Troubled retail chain Subhiksha today refuted media reports that the company has filed a petition in the Madras high court seeking a settlement with its stakeholders and creditors under section 391 of the Companies Act.

"Subhiksha has not filed any section 391 petition before the Madras high court," Subhiksha Trading Services Ltd managing director R Subramanian said in a statement.

Section 391 of the Companies Act provides that the court may order a meeting of the company and its creditors to arrive at a consensus on any issue. He, however, refused to give details "as the matter is before the court".

"We have been informed and notified that Cash and Carry Wholesale Traders Pvt Ltd, the promoter of Blue Green Construction and Investment Ltd, into which we are merging has filed a section 391 petition before the high court," he added.

Subhiksha merged with Cash and Carry Wholesale Traders' subsidiary Blue Green Construction and Investment in 2008 and the merger issue is pending before the Madras high court.

"The company and its management are working in close coordination with most of the banks on the restructuring ... Based on the discussions with the various stakeholders, " the statement added.