What S Alam Cold Rolled Steels says about assets auction
The company says it has been planning to launch legal proceeding against Janata Bank for putting its assets on auction
S Alam Cold Rolled Steels – the only capital market-listed company owned by the S Alam Group – stated that it has been severely affected by unforeseen circumstances beyond its control.
According to a disclosure on the stock exchanges today (8 January), the company is facing significant challenges, including the freezing of its bank accounts and restrictions on opening letters of credit by banks.
Despite these issues, its production, delivery of manufactured goods, and other business activities are continuing using existing stocks.
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The company also stated that the tender notice for auctioning its assets has had no business impact so far, in response to a query by the Dhaka Stock Exchange (DSE).
The DSE's query followed a recent move by the state-owned Janata Bank to auction the mortgaged assets of S Alam Cold Rolled Steels to recover loans amounting to Tk2,003 crore.
In its response to the DSE query, the company said, "The lender has floated tenders for the sale of the mortgaged assets. These actions have occurred amid the country's recent political crisis, which has directly affected us."
The company further stated, "However, due to the tender notice issued by the said bank, we are now in the process of initiating legal proceedings against the bank. Details regarding our intended legal action will be communicated to you as and when necessary."
Janata Bank's Sadharan Bima Bhaban Corporate Branch in Chattogram announced the auction of the assets after the company failed to repay its loans despite repeated notices and summons.
The state-owned lender floated tenders for the sale of the mortgaged assets on a loan consolidation basis, with bids open until 23 January.
According to the auction notice, S Alam Cold Rolled Steels had an outstanding loan of Tk2,003 crore as of 30 November 2024. Janata Bank stated that the loans were defaulted due to non-payment under the agreed conditions.
After securing legal authority to sell the mortgaged properties under the Money Loan Court Act, the bank decided to proceed with the auction.
The notice detailed that the company had secured the loan by mortgaging 2,971 decimals of land across Anwara, Patiya, Boalkhali, Hathazari, and Sitakunda police stations in Chattogram.
S Alam Cold Rolled Steels, listed on the stock market in 2006, specialises in manufacturing cold rolled steel strips (CR strips), CI sheets, and GP sheets. Its factory, located in Shikalbaha, Patiya, Chattogram, spans 12.02 acres.
