Winsome's lenders appoint nominee on company board

Defunct jewellery maker and exporter Winsome Diamond & Jewellery has appointed S P Tanwar as an independent director to its board at the insistence of a consortium of 14 lenders.  

Tanwar, former chief operating officer of Antwerp Diamond Bank, has been brought to oversee and assist in recovery from foreign customers and liquidation of bank dues.

The consortium insisted on a nominee on the board following devolvement of a standby letter of credit by Winsome in March last year. The company, along with group firm Forever Precious Jewellery and Diamond (promoted by Winsome promoter Jatin Mehta) has defaulted on Rs 6,000 crore worth loans after customers abroad did not make good payments of that amount.

In December 2013, banks had issued legal notices to the promoters of these companies and other directors seeking information on the money trail and efforts made by them for recovery of banks’ dues. Meanwhile, the consortium led by Punjab National Bank has decided to lodge a First Information Report against the companies and their promoters, sources said.

The customers abroad have acknowledged the debt and agreed to pay $75-100 million every year. However, during the current financial year, till date, only $2.5 million has been realised from them. The company might even consider legal action against them. The customers had been asking Winsome to continue supplies of jewellery and diamonds, which was not feasible because of lack of working capital.

The debt could not be restructured as amended Reserve Bank of India guidelines require promoters to bring their contribution upfront, said Jai Kumar Kapoor, the newly appointed additional director of Winsome.

Kapoor, former Chief Financial Officer of the company and associated with family for over 40 years, is likely to become a full fledge Chairman of Winsome subject to approval of shareholders at the ensuing Adjourned Annual General Meeting.