Gini & Jony approaches HSBC, Barclays to repay loans

The Bombay High Court has adjourned the case between Mumbai

- based kids’ apparel retailer Gini & Jony and its lenders including HSBC and Barclays Plc will be heard on July 20, 2012. Earlier, the firm had agreed to repay Rs 17 crores dues to the HSBC and also declared that it is in talks with other lenders including Barclays to repay the loans.

The second largest Indian kids’ wear firm Gini & Jony is next in line after Lilliput, to get under the debt burden. According to industry insiders, financial investors, including Anil Ambani's Reliance Capital are looking at making an exit from the company that went through a corporate debt restructuring (CDR) last year.

Though strategic buyers such as Arvind and Madura Fashion & Lifestyle were approached with a proposal to offload 70 per cent stake for Rs 350 crores, the talks did not yield a positive outcome due to a valuation mismatch. On the other hand, even PE investors are not showing interest in the sector following the recent collapse of Lilliput Kidswear and Avigo Capital Partners's troubled buyout of Spykar Jeans.

While Reliance Capital holds 22 per cent stake in Gini & Jony, Singapore-based fund Arisaig Partners has a 9 per cent share in the retail chain. The remaining majority shares are held by the Lakhani family, which is looking at raising funds and not exiting the company which has a retail turnover of Rs 300 crores.