A deal involving the takeover of the assets of Vishal Retail Ltd by US private equity fund Texas Pacific Group has been clinched. It is learnt that the promoter of the ailing retail firm, Mr R.C. Agarwal, will transfer the business into two new entities – a wholesale and a retail venture.
Texas Pacific Group will infuse Rs 250 crore into the new cash-and-carry or wholesale entity, with Vishal slated to carry out a slump sale to this company, transferring all its assets and most of its liabilities.
The proposal entailing the floating of a new firm for retail operations involves an Indian partner being inducted in due course.
Formal announcement by the corporate debt restructuring committee, which involves six of the 12 creditors that have to be paid Rs 736 crore by Vishal, is expected on March 26.
For the quarter ended December 2009, the company reported a net loss of Rs 120.92 crore.