Bombay Dyeing has said in a BSE filing that its proposed sale of a textiles processing unit at Ranjangaon in Maharashtra for Rs 230 crore to Oasis Procon has been cancelled due to failure of the latter to make required payments on time.
In May this year, the Bombay Dyeing board approved selling of its textiles processing unit at MIDC Industrial Area, Ranjangaon on a slump sale basis to New Delhi-based Oasis Procon Pvt Ltd.Bombay Dyeing has said in a BSE filing that its proposed sale of a textiles processing unit at Ranjangaon in Maharashtra for Rs 230 crore to Oasis#
According to the terms and conditions, Oasis Procon was obliged to complete the proposed transaction not later than July 31, 2015, Bombay Dyeing said in the BSE filing.
It said Oasis Procon forfeited the earnest money of Rs 25 lakh after it failed to consummate the proposed transaction and make the requisite payments according to the terms provided in the term sheet which now stands automatically cancelled.
The company had planned to utilise the proceeds to repay existing loans and reduce interest burden, among other business purposes. Bombay Dyeing had received shareholders' nod in June this year. (SH)
Fibre2Fashion News Desk – India
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