Lilliput Kidswear promoter writes to banks: Sources

In a fresh round of communication, Lilliput Kidswear's promoter has written to banks seeking appointment of two new auditors for re-audit. The promoter has once again refuted the allegations made by PE investors Bain and TPG, assuring the banks of returning dues in time, reports CNBC-TV18's Siddharth Zarabi.

The Lilliput Kidswear saga continues. Now, CNBC-TV18 learns that the promoter has written to banks and has said that two new auditors should be appointed for a fresh audit. This comes even as the promoter has assured the banks that all dues will be repaid on time. Infact the promoters have cited the available funds that they have to this fact.

The overall context really is that the Delhi High Court had passed an injunction against the private equity investors in Lilliput. It had restrained them from carrying out any activity, including alienating any shares that they have.

The private equity investors have moved the Delhi High Court as of yesterday. In that, they have sought to invoke the share purchase agreement. They have said that the Lilliput plea is not maintainable, it is devoid of fact and conjecture.

Overall, at this stage, this continuing saga of anonymous calls that has in effect sabotage the plans for a public issue by this company continues. More developments are likely as this issue is now joined at the Delhi High Court.