HMX Group Deadline: Sale Or Bankruptcy Protection

The deadline for liquidity constraints is coming up, forcing the company to decide whether to sell the company or apply for bankruptcy protection next week.

The liquidity constraint is due to the lack of funds from its parent company S. Kumars Nationwide Ltd., headquartered in Mumbai.

The company CEO Doug Williams is traveling and declined to comment on the matter.

 

HMX group deadline: sale or bankruptcy protection

According to reports, a new financing plan negotiations between HMX and Salus Capital Partners broke down in August, depending on SKNL's injection of installment funds.

This is necessary, because Salus's emergency.

It has ended in June, but it has encountered obstacles because a necessary capital injection from SKNL never appeared.

Last month, there was concern that SKNL might not be able to meet the requirements of the first phase of capital injection, so HMX began an unofficial sale process and held talks with potential bidders.

One of the potential buyers is Iconix brand group.

Since then, including

Management company Authentic Brands and private equity firms Bluestar Alliance began actively bidding.

According to sources, HMX also seriously considered filing for bankruptcy protection.

If the company chooses this path, it will be the second time it filed for bankruptcy protection in four years.

The history of HMX originates from the Hartmarx company which is no longer in existence. SKNL bought the bankrupt Hartmarx in August 2009 and renamed it HMX.

Emerisque Brands, headquartered in London, has a minority stake in HMX.

SKNL has ambitious plans for HMX since its acquisition, but the India company has its own problems.

At the end of 2011, India's economic problems forced SKNL to postpone the India brand Reid & Taylor listing plan.

Last month, SKNL had to postpone its annual shareholders' meeting.

Also last month, the Serious Fraud Investigation Office received a complaint about the violation of SKNL corporate governance. The registered SKNL company in Mumbai is under review.

In a regulatory filing of the Mumbai stock exchange, SKNL said, "personal matters are boring and groundless."