INDIA: Radico Khaitan fights winding-up ruling
Indian spirits firm Radico Khaitan has said that it is appealing against a winding-up order on the company, issued by the High Court of Allahabad.
Radico Khaitan, which has a joint venture with Diageo in India and holds a 10% share of the country's spirits market, confirmed in a letter to the Bombay Stock Exchange that a High Court judge has ordered the group to be wound-up.
The action was brought by UK-listed company Hayman Ltd, which claims that the Indian firm owes it money. It has alleged that Radico agreed to act as guarantor for an associate company, Radico SPS UK, which defaulted on payments to Hayman in 2007 and later collapsed.
Radico said in its letter, dated yesterday (1 April), that it "strongly contests any admission of debt" and that an appeal hearing has been set for 8 April. An appeal hearing scheduled for 24 March was cancelled due to a lawyer strike.
Radico said that it remains "a commercially solvent and going concern". It added: "The company's management is strongly concerned about the pressure tactics/arm twisting technique of recovering the outstanding due payable by [the] other company through abusing the legal mechanism by filing a winding-up petition."
After seeking legal advice from "eminent lawyers", Radico said that it was confident of reversing the High Court's winding-up ruling.
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