The Chittagong-based industrial group has announced legal action to block the initiative taken by Janata Bank to auction the assets of two companies of the S Alam Group to recover Tk 4.5 billion in defaulted loans.
On Wednesday (January 8), the company announced on the Dhaka Stock Exchange (DSE) website that it will take legal action against the auction.
Of the two companies that auctioned their assets, S Alam Cold Rolled Steels is listed on the capital market. Earlier, on January 5, the DSE authorities sent a letter to the company seeking information about the asset auction. In response to that letter, the S Alam Cold Rolled Steels authorities informed about the legal action being taken.
In response to the DSE letter, the company said that the company is facing various challenges due to unforeseen circumstances beyond its control. In the meantime, the company’s bank accounts have been frozen. There is also a ban on opening letters of credit in banks. As a result, we are seriously affected in running the company’s operations. However, the company’s production and distribution activities are still ongoing.
According to the sources of Janata Bank, the bank owes 1 thousand 777 crores to S Alam Sugar Refined Industry. Tk 2,030 crore to R S Alam Cold Rolled Steels. The bank’s total debt to these two companies is Tk 3,780 crore. Currently, this loan of the bank has become a default. As per the rules, the bank has auctioned the mortgaged property to recover the defaulted loan. Meanwhile, this auction notice is published in the newspaper.
