Consortium banks take Everest Vinyl under their control
HETAUDA, SEP 21 -
In a move to recover outstanding loans from Everest Vinyl, five banks which provided consortium loans, have brought the industry under their ownership.
Banks including Himalayan, Bank of Kathmandu (BoK), Global, Nabil and Sunrise had lent Rs 650 million to the carpet factory three years ago, but it failed to pay back both the principal and interest.
In order to simplify the takeover process, the banks have agreed to provide Rs 40,000 as compensation to the factory workers along with their salary of the last six months and Dashain bonus. However, workers will have to take voluntary retirement to get the compensation. There factory employees 197 individuals.
The Hetauda Industrial Estate-based factory has remained shut since April 14 after its Managing Director Raj Kumar Kothari closed the factory and stayed out of contact.
At a tripartite meeting held here on Tuesday, trade union leaders of the factory, district-level trade union leaders, president of Industries Association, vice president of Makwanpur Chamber of Commerce and Industry and representatives of the five banks reached an agreement to provide compensation to workers and relieve them of their jobs.
Industries Association President Rishi Ram Ghimire said the banks agreed to provide the compensation to workers and staffers to simplify the factory’s takeover process. The banks will spend Rs 21.3 million for compensating the factory staffers.
Earlier, the banks had sealed the factory after its proprietors Bikash Kothari and Raj Kumar Kothari ran away without repaying loans. Following the incident, the banks issued public notice several times to auction the company’s property, including equipment and produced goods. “However, no one was ready to purchase due to workers’ liabilities,” said a senior BoK official. “Compensation payment to workers will pave the way for the auction.”
Meanwhile, one of the proprietors, Bikash Kothari, has filed a case in the District Court Kathmandu to prevent the auction. He has demanded a total of Rs 270 million in compensation from the banks, saying that the banks had delayed in sanctioning required loans for factory operations causing huge losses.
The factory, established with an investment of Rs 1 billion, used to produce carpets and other synthetic materials and export to international markets.
Source: Kantipur
In a move to recover outstanding loans from Everest Vinyl, five banks which provided consortium loans, have brought the industry under their ownership.
Banks including Himalayan, Bank of Kathmandu (BoK), Global, Nabil and Sunrise had lent Rs 650 million to the carpet factory three years ago, but it failed to pay back both the principal and interest.
In order to simplify the takeover process, the banks have agreed to provide Rs 40,000 as compensation to the factory workers along with their salary of the last six months and Dashain bonus. However, workers will have to take voluntary retirement to get the compensation. There factory employees 197 individuals.
The Hetauda Industrial Estate-based factory has remained shut since April 14 after its Managing Director Raj Kumar Kothari closed the factory and stayed out of contact.
At a tripartite meeting held here on Tuesday, trade union leaders of the factory, district-level trade union leaders, president of Industries Association, vice president of Makwanpur Chamber of Commerce and Industry and representatives of the five banks reached an agreement to provide compensation to workers and relieve them of their jobs.
Industries Association President Rishi Ram Ghimire said the banks agreed to provide the compensation to workers and staffers to simplify the factory’s takeover process. The banks will spend Rs 21.3 million for compensating the factory staffers.
Earlier, the banks had sealed the factory after its proprietors Bikash Kothari and Raj Kumar Kothari ran away without repaying loans. Following the incident, the banks issued public notice several times to auction the company’s property, including equipment and produced goods. “However, no one was ready to purchase due to workers’ liabilities,” said a senior BoK official. “Compensation payment to workers will pave the way for the auction.”
Meanwhile, one of the proprietors, Bikash Kothari, has filed a case in the District Court Kathmandu to prevent the auction. He has demanded a total of Rs 270 million in compensation from the banks, saying that the banks had delayed in sanctioning required loans for factory operations causing huge losses.
The factory, established with an investment of Rs 1 billion, used to produce carpets and other synthetic materials and export to international markets.
Source: Kantipur
