Covid-19 effect: Arvind Fashions opt for moratorium on repayments

Arvind Fashions Ltd (AFL), part of Ahmedabad-based Lalbhai group, has opted to use moratorium on loan repayment amid closure of stores resulting in significant weakening of cash flows due to national lockdown to combat coronavirus spread.

On March 27, Reserve Bank of India had permitted lenders to grant borrowers the moratorium for three months for its debt obligations, including interest on working capital facilities as a Covid19-relief measure.

The company is also taking steps including slashing expenditure to manage adverse impact from sharp decline in demand and disruption in operations. Its promoters are extending unsecured loans facility worth Rs 50