HC hearings on Subhiksha stayed by SC

The Supreme Court has stayed for now all hearings in the High Court here on the revival or winding up of Subhiksha Trading Services, the cash-strapped retail chain.

Cash and Carry Wholesale Traders(C&C), a subsidiary of Subhiksha, today said it had gone to the SC against the earlier HC rejection of a revival scheme proposed by it. The SC stay, its counsels told the HC today, is till November 23.

On November 5, a two-judge bench of the HC had upheld an earlier order of a single judge which rejected a scheme proposed by C&C for Subhiksha, which involved compelling its lenders to accept a write-down-cum-restructuring of its debt.

The scheme was filed by one of the C&C directors, asking Subhiksha’s secured lenders to settle for only part of the principal amount of loans taken by the retail chain after a cutoff date, among other things.

Many of Subhiksha’s lenders want the company to be wound up and their debt to be repaid.