HC bars Vishal Retail from selling assets for 6 months

The Delhi High Court barred Vishal Retail Ltd from selling any assets for the next six months. The debt-striken retailer is engaged in a corporate debt restructuring (CDR) exercise with creditors and is in talks to sell a stake to private equity company, TPG Capital Lp. The court order means Vishal Retail will not be able to proceed with the stake sale to TPG for the next six months.

The court, hearing a winding-up petition filed by Singapore’s DB300S Bank Ltd, passed an interim order on May 11 restricting Vishal Retail from selling any movable and immovable assets before the next hearing on 25 November.

The court asked the retailer to file an affidavit providing information on its assets, lists of debtors and creditors, number of employees and the amount outstanding to them, and its audited balance sheets for the last three years.

Several lenders to Vishal Retail, including State Bank of India, HDFC Bank Ltd and ING Vysya Bank Ltd, are currently working on a CDR exercise with the listed discount retailer. The retailer is seeking to reschedule Rs730-crore of debt. The lenders have already approved a proposal by TPG Capital to take over the retailer.

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