The ministry of corporate affairs (MCA) has asked creditors of retail apparel company Koutons to submit their investment claims for verification with the official liquidator of the Delhi High Court. The ministry, in a notice, has asked secured and unsecured creditors of Koutons to submit to the official liquidator, attached to the Delhi High Court, to prove their claims or investments against the company by delivering them at the office of the liquidator on or before January 25, 2019. “Any workman/ secured creditors/ unsecured creditors to the said company who fails to submit the proof of debt within the stipulated time will be excluded from the benefits of any entitlement,” the notice added.
Koutons manufactured a range of apparels for men, women and children, and marketed them through a network of more than 1,400 company-owned and franchise outlets across India. In October 2013, Koutons Retail India (KRIL), which went public in 2007, said that a winding-up order was passed by the Delhi High Court and an official liquidator was appointed.
The company had failed to pay dues it owed to suppliers and creditors. In April 2017, KRIL said it has decided to delist from exchanges with effect from May 12, 2017. KRIL, which reportedly had around Rs 660 crore in debt on its books, had also undergone corporate debt restructuring (CDR) in 2011, but it could not be revived. Following which its creditors moved court.