Court summons Appollo Ispat owners for defaulting on Jamuna Bank loan
On Tuesday, the court issued the summons notice through a newspaper. In the notice, the court asked the company’s directors to be present in court on 23 October and submit their complaints/objections (if any) in writing.
The money loan court of Dhaka has summoned the owners of the publicly listed Appollo Ispat Complex Limited — once renowned for its corrugated iron sheets brand "Rani Marka Dheutin" — for defaulting on a loan from Jamuna Bank.
On Tuesday, the court issued the summons notice through a newspaper. In the notice, the court asked the company's directors to be present in court on 23 October and submit their complaints/objections (if any) in writing.
If they fail to show up, the court will pass the judgement following the Money Loan Court Act, 2003.
In May this year, Jamuna Bank filed a lawsuit against Appollo Ispat for defaulting on a loan of Tk145.69 crore, including interests.
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An official at Jamuna Bank told TBS that Appollo Ispat borrowed from the bank before 2010. Till 2018, the company has been irregular with its instalment payments. But after that, the company stopped paying any instalments altogether.
The bank sent several notices to the company in this regard, but it did not respond to any of those, the official added.
Neither could Managing Director Mirza Elias Uddin Ahmed nor Vice Chairman Mohammad Shoeb of Appollo Ispat be reached over the phone for a comment.
In August this year, Mohammad Shoeb wrote to the BSEC and sought the waiving of surcharges, fines, and listing fees until the company's situation improves. He mentioned that the company is looking for a strategic partner.
"The overall process to complete financial and corporate restructuring along with finding a strategic investor may take six to nine months," the letter reads.
He claimed that the past employees acted against the interests of the company which caused damages and piled up the debt burden.
The company's Chairman Deen Mohammad, who was a Dhaka Awami League leader, Founding Managing Director Ansar Ali, Deputy Managing Director Abdur Rahman, and Company Secretary SK Abul Hasan passed away.
Appollo Ispat has been out of production for more than two years owing to the absence of board members and a lack of proper leadership, Mohammed Shoeb stated in the letter.
"We have taken legal action against the former managing director, and also against our former chief financial officer for their malfeasance. Now, along with a few directors, I'm trying to manage the company," Mohammed wrote in the letter to BSEC.
Appollo Ispat went public in 2013 to raise Tk220 crore from investors, mainly to repay bank loans with Tk150 crore. The remaining amount was invested for capacity expansion.
But due to a high debt burden, some capital market investors opposed its listing and even the then finance minister wrote to the BSEC not to approve Appollo Ispat's initial public offering.
