Mithun Knitting and Dyeing Ltd, which closed in 2019, is not yet sure whether its factory assets have been sold or not.
The company, in a filing on the Dhaka Stock Exchange (DSE) website on Thursday, said the Bangladesh Export Processing Zones Authority (Bepza) took over all possessions of the plant on February 26, 2019. , and since then the company has not been informed. on the sale of its assets.
In 2019, the company which belongs to the Bangas Tallu group had to cease its activities because it did not comply with the modernization conditions demanded by international buyers.
After becoming non-operational, the company also failed to comply with securities rules and regulations.
In addition, he failed to disclose annual and quarterly financial reports for fiscal years 2018-2019 to 2020-21. It has not paid any dividends to shareholders since the 2016-2017 financial year.
Sources say Mithun Knitting was forced to close its factory because Bepza terminated the lease and took away all of its factory assets in February 2019, after the company failed to repay area receivables Chattogram Export Processing Center (CEPZ).
According to a qualified opinion, the authority of the CEPZ had warned the management of Mithun Knitting of the termination of the agreement in the event of default.
CEPZ also informed of its claim on the company which was around Tk 10.68 crore.
Mithun Knitting and Dyeing Ltd started operations in 1991 and was listed on the stock exchange in 1994.
Its factory is in the CEPZ and the company suffered a loss in the 2016-17 financial year, after paying 20% stock dividends the previous year.