5 June 2020: Ludhiana: Even as bicycle parts manufacturers of Ludhiana are nervous after Atlas Cycles (Haryana), Sahibabad, shut down its plant, the latter have given an assurance that they will clear all dues of city-based cycle parts manufacturers. According to sources in the bicycle industry, the company has several crores rupees pending towards Ludhiana bicycle part factories against the material supplied by them to the company. Now, with company shutting down its plant, Ludhiana businessmen are jittery as they fear about the safety of their payments.
On Thursday, president of the United Cycle and Parts Manufacturers Association (UCPMA) D S Chawla spoke to senior functionaries in the Atlas Cycles (Haryana), Sahibabad, on behalf of Ludhiana industrialists and he has been assured by the company representatives that the payments of suppliers are safe and moreover, the company will start functioning normally after the resolution of a legal matter.
Giving more information to TOI, Chawla said, “On the subject of reports about the permanent closure of the Atlas Cycles (Haryana), Sahibabad, I spoke to very senior officials of the company on Thursday regarding the payments to be made to the Ludhiana vendors. In this connection I also spoke to other officials, including senior functionary N P Singh Rana. I have been informed by all of them this is not a permanent shut down and this is a temporary phase to save day to day expenses of the unit which are in crores (apart from the labour salaries).”
He added, “The company has an ongoing case in the NCLT, hearing on which is due on June 18. The company intends to get permission for sale of land in Sonipat, which is nearly 25 acres. The unconfirmed estimate of the pending dues of the Ludhiana industry are around Rs 100 crore, whereas the value of this land they intend to sell is much more than these dues. After disposing of the land with the permission of the NCLT, the company will have liquid money surplus and they will be in position to pay off all debts.”
“Moreover, the company has made it clear that they do not have any ill intentions of any kind to keep anyone’s dues and once the case is settled, they will resume the bicycle production like before and the bicycle parts manufacturers of Ludhiana will keep getting business from the company like before,” Chawla said.
Source: The Times of India
Categories: India Bankruptcy