iPhone | iPad
Android
Huawei
The 'Dangal' actor has shed light on his choice to skip film award ceremonies, emphasising the value of time
KT APPDOWNLOAD
I will repay every penny to my creditors: Atlas Ramachandran
Atlas group owned 48 jewellery outlets in the GCC and India, including 19 in the UAE.
dubai - He discusses debt settlement and business revival strategies with creditors.
M.M. Ramachandran, the embattled jewellery magnet who once made his mark as the force behind a top-selling jewellery brand in the GCC and India, pledged to present a detailed repayment plan to all creditor banks within the next three months at the meeting held at the premises of an Indian bank in DIFC on Monday.
> M.M. Ramachandran has pledged to present a detailed repayment plan to all creditor banks within the next three months.
"We will have another meeting in the next 30 days when I have to give creditors my progress in submitting within the next few months a definitive settlement schedule as well as my business revival plans. I also have to give them a detailed account of all my assets and liabilities in the GCC and India," said Atlas owner whose jewellery outlets in Saudi Arabia, Kuwait, Oman and India are still operational.
The Atlas boss, who enjoyed a near celebrity status as a film producer, actor and a brand ambassador before his imprisonment, said all the 14 banks' representatives who were present at the initial meeting were fully supportive of his action plan to stage a comeback.
Ramachandran, who also has made his mark as a real estate developer in south India, blamed his digression away from his core jewellery business for the business setback. This finally resulted in a Dubai court sentencing him to a jail term in 2015 after finding him guilty of issuing two bounced cheques worth Dh34 million to two banks as security.
A banking source well informed of the discussions at Monday's meeting said that had Atlas owner been given enough time by creditors before going to the police, his business collapse in the UAE could have been averted. Hailing the move by the UAE to introduce a bankruptcy law and decriminalisation of bounced cheques as a landmark initiative, the source hoped such pro-business measures would have a far-reaching positive impact on the business community and investor confidence.
Atlas group owned 48 jewellery outlets in the GCC and India, including 19 in the UAE, besides operating two hospitals in Oman as well as real estate business in India.
A source at one of the banks said creditors were promised by Atlas boss that he would be able to restart his business in Dubai by opening the first showroom this year with the support of some investors who are keen to tap his goodwill and brand equity.
"Over the next two years, if everything goes as planned, our jewellery network in the UAE is expected to expand to some 10-plus outlets. I am confident that I will be able to repay from my share of business earnings on a pro rata basis to all creditors in a phased manner over a certain period," Ramachandran said.
The initial investment for the first outlet with 200 kilos of jewellery is estimated to be Dh30 million. "Talks with prospective investors are under way and I hope to relaunch my UAE business with the opening of the first showroom in Dubai's Gold Souk."
Banking sources said lenders were given to understand that Atlas owner would evaluate business interests in Saudi Arabia, where the group operates three outlets in partnership, and look forward to consolidating his business in Kuwait where he runs five showrooms. In Muscat, Atlas has one outlet operational in Ruwi.
"I will also have to take stock of business interests in Doha. My intention is to bounce back to full swing operations so that I will be better positioned to pay off debts from my net earnings," Ramachandran said.
Atlas owner also has plans to give a major fillip to his listed company Atlas Jewellery India Ltd that runs a flagship showroom in Bengaluru and another outlet in Thane, Maharashtra. "Our plan is to refocus on an earlier strategy of jewellery franchising. There is huge potential for that business model in India, given the enquiries I receive," he said.
On the stock market, Atlas Jewellery India Ltd shares are performing well at ?154.7 each. "We are quite optimistic of better days ahead," said Ramachandran, who reportedly owns 50 million shares in the Indian firm.
"One thing I want to assure them [creditors] is that over a period of time, I will pay back every penny without fail. I am equally determined to look after the interests of some 5,000 small shareholders of Atlas India Ltd," he said.
As per the standstill agreement reached with creditors before his release, the Atlas boss is required to restructure his jewellery business "in a manner that will facilitate the repayment of the existing facilities in full" within 180 days.
According to documents obtained by Khaleej Times, the 76-year-old former banker owes banks, including five Indian banks, a total of over Dh500 million as of December 31, 2016. However, Ramachandran disputes the figure, saying it is more than what he really owes.
However, the latest net outstanding aggregate loan amount - after settling a loan owed to Bank of Baroda's Muscat branch following the sale of two hospitals owned by the group in Oman - is not available. Healthcare provider NMC Group of the UAE bought the two hospitals for Dh105 million in 2017.
- issacjohn@khaleejtimes.com
More news from
The actor discussed what he has learned from his relationship with the singer on a podcast hosted by Jay Shetty
The Mena region’s fintech landscape is booming, with over 800 start-ups worth $15.5 billion
The actor is a mother to three children whom she shares with ex Ben Affleck
The former Spice Girl, who turned 50 recently and celebrated with a lavish birthday event shared numerous photos from the party on her Instagram Stories
Ministry of Education teams up with leading law firms in a joint committee initiative
Discover Dubai's top pizza destinations, where every bite promises to be a slice of perfection
IMF has raised India's economic growth forecast to 6.8% in 2024-25
