Vishal Retail's Corporate Debt Restructuring (CDR) process has run into trouble, reports CNBC-TV18 quoting sources. The company's Group President Ambeek Khemka has quit due to differences with the promoters. The promoters, the sources said, were refusing to sell stake and exit the company.
The promoters had wanted banks to infuse Rs 100 crore for the next two years and the bankers had wanted a new strategic investor on the company's board. The strategic investor was ready to put Rs 500 crore for majority stake.
The company had asked for a month extension on CDR. Vishal Retail CDR was due to be closed by February end.
CNBC-TV18 had earlier reported that Vishal Retail's founder Ram Chandra Agarwal, who held about 60% stake in the company, was willing to dilute his stake and bring in a strategic investor. Khemka had said then, that this move would help the company survive.
Vishal Retail, which runs a chain of 147 stores across the country, ran into difficulty in late 2008 after it failed to raise equity amid an economic downturn which also hit its sales, leaving it with a huge debt burden.
Vishal Retail's 
