Emerald Oil Industries Limited, a listed company, has been shutdown since 2016 following its Managing Director Syed Hasibul Gani Galib fled to USA after his bail and arrest on a charge of loan forgery with Basic Bank.
Its Chairman Syed Manwarul Islam, bridegroom of Mr. Galib was hired by MD is now sick and unable to led the company anyway. Three Other hired directors who previously were employees of Emerld Oil Mr. A.S.M. Monirul Islam, Mr. Sajan Kumar Basak and Mr. Amitabha Bhowmik are now trying to get rid from the loan burden of the company by handing over management to a new entrepreneur.
“Following an entrepreneur desire to take over the management of the company along with loan burden we approached Basic Bank and Bank Asia to reschedule loans,” Sajan Kumar Basak told Business Mirror.
“The Managing Director and Chairman have no capacity to repay the loan amount anyway. The new investor who has interest to invest into the company afresh is eager to get the loan rescheduled,” Sajan Kumar Basak added Saying the Basic Bank board are refused the application.
Sajan Kumar said the MD Mr. Galib is a dire condition in USA who wants to handover all responsibility to new management along with his personal lands at Sherpur.
Emerald Oil Industries Limited launched its ‘Spondon’ brand rice bran oil by getting loan worth Tk 60 crore from Basic Bank, Tk 20 crore from Bank Asia and another Tk 60 crore from Initial Public Offering of the Capital Market.
But it failed to pay loan amount it get from Basic Bank which now increased to Tk 120 crore along with Bank Asia.
Meanwhile, In a breach of securities rules, Emerald Oil Industries did not inform the stock exchanges and shareholders that its production remained suspended for more than a month and a half.
The decision to put production on hold for maintenance should have been disclosed as it is price-sensitive information in line with securities rules.
But the company did not announce it timely, said an official of Dhaka Stock Exchange, which sent a letter to Emerald Oil.
Emerald Oil was listed on the stock market in 2014. Each share of the company traded Tk 12.5 before closing the DSE yesterday. The company produces the Spondon edible oil by processing rice bran collected from auto rice mills.
Emerald Oil Industries Ltd. engages in the production of rice bran oil by processing rice bran collected from local auto rice mills. The company markets its product in its own brand name Spondon Rice Bran Oil. It also produces various byproducts, including De-Oil Rice Bran, Fatty Acid, Wax, Gum and Spent Earth. Emerald Oil Industries was founded on July 17, 2008 and is headquartered in Dhaka, Bangladesh.
The securities regulator earlier in 2018 had ‘freeze’ the BO (beneficiary owner’s) accounts of the sponsors, directors and four top officials of Emerald Oil Industries for not submitting the company’s financial statement. According to the BSEC, Emerald Oil Industries failed to submit the financial statement for the year ended on June 30, 2017.
The regulator has taken the decision of freezing the BO accounts directors, other than independent ones, sponsors, chief executive officer, chief financial officer, company secretary, and head of internal audit and compliance for the failure of submitting the financial statement.
