CHENNAI: Former Maruti Suzuki MD Jagdish Khattar -promoted multi-brand car service corporate Carnation, which is these days going thru an insolvency resolution procedure, has discovered new investors prepared to take over the industry. According to the resolution skilled Arvind Garg, Mumbai-based car service startup Carcrew and Gurugram-based internet and e-commerce corporate Smile crew have shown passion in Carnation.
"The expressions of interest have come and the new investors eager to take over the company will begin due diligence soon," mentioned Garg. The creditors to the company have additionally committed a working capital infusion of Rs 1.5 crore, which will likely be put in by means of subsequent week.
The whole insolvency resolution procedure was not on time when the earlier resolution skilled, Mukesh Mohan Gupta, resigned in February. Garg took over two weeks in the past. "There was some extent of demoralisation some of the team of workers and the franchisees as a result of which the cash float was diminished,'' mentioned Garg.
With the committee of creditors and the resolution skilled arranging Rs 1.5 crore, one of the crucial uncertainty plaguing the industry will have to pass away, he mentioned. The previous six-month deadline having lapsed, the company has now received a three-month extension. "We will wrap up the resolution procedure in that time," mentioned Garg.
Already, an information memorandum at the provide standing of the company has been issued and sources say there are other investors too in the fray, with the exception of Carcrew and Smile. Carcrew was not too long ago in the news when it raised $500,000 in angel funding led by means of the TVS crew. The Smile crew runs a complete bunch of e-commerce and internet companies. One of its crew companies, SVG Media, was received by means of Dentsu Aegis remaining 12 months.
The company insolvency resolution procedure was initiated in opposition to Carnation by means of its creditor Punjab National Bank. Carnation was formed in a blaze of high-profile investments in 2008-09 after Khattar retired from Maruti Suzuki.
"The expressions of interest have come and the new investors eager to take over the company will begin due diligence soon," mentioned Garg. The creditors to the company have additionally committed a working capital infusion of Rs 1.5 crore, which will likely be put in by means of subsequent week.
The whole insolvency resolution procedure was not on time when the earlier resolution skilled, Mukesh Mohan Gupta, resigned in February. Garg took over two weeks in the past. "There was some extent of demoralisation some of the team of workers and the franchisees as a result of which the cash float was diminished,'' mentioned Garg.
With the committee of creditors and the resolution skilled arranging Rs 1.5 crore, one of the crucial uncertainty plaguing the industry will have to pass away, he mentioned. The previous six-month deadline having lapsed, the company has now received a three-month extension. "We will wrap up the resolution procedure in that time," mentioned Garg.
Already, an information memorandum at the provide standing of the company has been issued and sources say there are other investors too in the fray, with the exception of Carcrew and Smile. Carcrew was not too long ago in the news when it raised $500,000 in angel funding led by means of the TVS crew. The Smile crew runs a complete bunch of e-commerce and internet companies. One of its crew companies, SVG Media, was received by means of Dentsu Aegis remaining 12 months.
The company insolvency resolution procedure was initiated in opposition to Carnation by means of its creditor Punjab National Bank. Carnation was formed in a blaze of high-profile investments in 2008-09 after Khattar retired from Maruti Suzuki.
Carnation sees interest from 2 new investors
![Carnation sees interest from 2 new investors]()
Reviewed by Kailash
on
April 01, 2018
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