HC directs Al-Arafah Bank to provide financial assistance, claims Libra Infusions
In the disclosure, Libra Infusions said its shortfall in working capital has been effectively resolved with the High Court rule
Libra Infusions Limited has announced that the High Court has issued a rule directing Al-Arafah Islami Bank to provide all forms of financial assistance to the company by the agreement executed between the parties, as disclosed by the Dhaka Stock Exchange on Tuesday (24 December).
In the disclosure, Libra Infusions said its shortfall in working capital has been effectively resolved with the High Court rule. Consequently, there are no longer any impediments to resuming full-scale production, said the company.
However, Libra Infusions did not disclose which bench of the High Court issued the rule and other details.
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The reporter tried to contact ANM Mainuddin, company secretary of Libra Infusions, via phone and WhatsApp messages to gather more details. However, he did not answer the calls or respond to the messages.
An official of Al-Arafah Islami Bank, speaking anonymously, said the company's disclosure is not entirely accurate. The High Court issued a rule to maintain Libra Infusions' classified loan status until 11 January 2025, he said. The court set the date for its hearing on the matter, the official added.
On 1 December, the Money Loan Court imposed a travel restriction on the directors of Libra Infusions, preventing them from leaving the country. Additionally, a case filed by Al-Arafah Islami Bank against Libra Infusions, involving an amount of Tk179.66 crore, is currently ongoing as of August 2023.
Recently, the company published its three-quarter financial statement from July to March period of fiscal year 2021-22 where the company posted an impressive profit growth compared to the previous financial year.
In the July-March period of FY22, its earnings per share stood at Tk4, which was a loss of Tk6.44 in the same period of the previous fiscal.
End of March 2022, its net asset value per share was Tk843.
Since then, the company has not published its financials.
The share price of the company stood at Tk825.5 on the Dhaka bourse today.
Market insiders say the country's largest saline producer, Libra Infusions, currently has a paid-up capital of only Tk2.25 crore, while the regulatory requirement is Tk30 crore.
The Bangladesh Securities and Exchange Commission (BSEC) had previously instructed the company to raise its paid-up capital to meet the regulatory standard.
