B Mirror Report:  Ring Shine Textiles Limited, a 100 percent export-oriented company operating in the Dhaka Export Processing Zone (DEPZ), is facing a severe financial crisis and possible eviction over unpaid dues to the Bangladesh Export Processing Zones Authority (BEPZA).

In a bid to protect investors’ interests and revive operations, the company’s foreign entrepreneurs have written to Prime Minister Tarique Rahman seeking a meeting and government support to overcome the ongoing crisis.

The company was established in 1997 by nine investors from Thailand, Taiwan and Indonesia. In the letter, the investors said the factory is now at risk of eviction due to failure to clear outstanding payments to BEPZA. They also stated that two affiliated companies  Avant Garde Fashion and Shine Fashion  have already ceased operations.

According to the investors, two foreign directors are currently unable to leave Bangladesh due to travel restrictions, while other foreign stakeholders are reluctant to visit the country fearing similar complications.

Managing Director Aniruddha Pial said the company had made significant contributions to Bangladesh’s economy until 2019. However, operations later became stagnant due to the economic slowdown following the Covid-19 pandemic, mounting debt burdens and shortages in working capital.

He said the company had already received loan rescheduling facilities from Bangladesh Bank and now plans to seek financial support from the Tk 40,000 crore special fund created for sick and closed industrial units.

The current situation of Ring Shine Textiles has been linked to its controversial initial public offering (IPO) process in 2019. An investigation by the Bangladesh Securities and Exchange Commission (BSEC) reportedly found that a syndicate involving controversial customs official Matiur Rahman and FAR Group’s Abdul Kader Faruk acquired shares worth Tk 112 crore without depositing any funds.

The alleged manipulation led to misuse of Tk 150 crore raised through the IPO and pushed the company toward financial collapse.

According to BEPZA data, Ring Shine’s outstanding dues stood at around $16.19 million as of January 25 this year. Due to non-payment, DEPZ authorities have already issued notices cancelling lease agreements for several plots.

Investors also remain in the dark about the company’s actual financial condition as it has failed to publish financial reports for a long period.

Despite the crisis, Aniruddha Pial expressed hope that with direct government support, the foreign-owned company could resume full-scale production and help restore confidence among international investors in Bangladesh.