AB Bank sells Aman Feed factory and land for non-payment of loans

AB Bank has put up for sale the Aman Feed plant and its guarantees for non-payment of Tk 268.40 crore in loans and interest within the authorized July deadline.

“We gave them enough time and talked to them a few times, but to no avail. That’s why we put their factory and land in Sirajganj and Gazipur up for auction, ”said AB Bank President and CEO Tarique Afzal.

The bank estimates that the approximate value of the property, including the factory in Sirajganj and the land in Sirajganj and Gazipur, is over 70 crore Tk.

Aman Feed, an Aman Group company, obtained the revolving loans to purchase machinery, equipment and raw materials in 2006 when it started commercial production to make feed for poultry, fish, shrimp and livestock to meet to the needs of the booming poultry, aquaculture and dairy industries. noted.

Bangladesh needs almost 65 lakh tonnes of feed per year and the poultry industry is the main consumer.

Aman also has activities in poultry farming and hatcheries.

AB Bank said it filed complaints against Aman Feed under the Tradable Instruments Act earlier and arrest warrants have also been issued against company officials.

The lender had given Aman Feed time to repay the loans in an attempt to reduce its non-performing loans and improve overall financial health.

“But, since the company did not repay the loans, we put all of its enforceable mortgages up for auction,” Afzal said.

The bank has published notices of the sale of the property indicated as a mortgage by the managing director of Aman Feed, Md Shoffiqul Islam.

The Bangladesh Securities Commission also fined all Aman Feed directors except independent director Tk 25 lakh each in January for violating securities rules.

Aman Feed went public in 2015 after launching two crore shares to the public and raising Tk 72 crore to use the fund for expansion, loan repayments and as working capital.

The company, however, in its IPO usage report submitted to the stock market regulator, said all loans under the initial public offering (IPO) proposal have been repaid to AB Bank.

In October last year, the bank issued a legal notice to Aman Feed stating that the company had not paid the monthly loan payments.

A special audit report from MBS and J Partners Chartered Accountants said the company misused the money and provided false information to the stock market regulator.

The bank has offered Aman Feed various opportunities, including a loan rescheduling facility and an interest waiver, Afzal said, calling the company a willful default.

Yesterday, Aman Feed chairman Rafiqul Islam did not respond to Daily Star phone calls and texts.

In the fiscal year ended June 30, 2019, Aman Feed recorded Tk 621.68 crore, up 15% from the previous year.

The company’s sales increased 20% year-over-year to 160,870 tonnes in its 2018-19 fiscal year, according to its annual report for 2019.

Aman Feed’s net profit fell 11% to Tk 47.87 crore in fiscal year 2018-19 from a year earlier, while earnings per share also declined.

The company offered a 13% cash dividend in 2019, up from the 20% cash dividend and 10% stock dividend announced the previous year.

As of June 30, sponsors held 63.26% of the company’s shares while the general public 24.24% and institutional investors the rest, according to the Dhaka Stock Exchange.

“As AB Bank and Aman Feed are listed companies, we will see if they do everything according to the securities rules. We will take action if they do something wrong,” said Mohammad Rezaul Karim, spokesperson and director. executive of the BSEC (current office).

Aman Feed shares closed at 29.5 Tk on the DSE on Thursday, up 3.5 percent from the previous day.

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