Emerald Oil Industries Ltd, the producer of the almost forgotten Spondon branded rice bran oil, has announced to resume its commercial production on 1 September as a Japanese investor is set to take care of the company's finances and also help its potential exports to Japan alongside serving the local market.
The company halted its production in 2017 due to a shortage of working capital following its founders' loan scam, getting arrested and finally fleeing the country.
The listed company on Monday announced that its newly constructed board of directors decided to resume full-fledged production with daily rice bran inputs of 330 tonnes against which the daily edible oil output would be 48 tonnes alongside 282 tonnes of de-oiled rice bran.
Earlier, in March this year, the securities regulator reconstructed the failed company's board through appointing five distinguished professionals, while a representative of its Japanese investor Minori's Bangladesh arm too joined the board.
The Bangladesh Securities and Exchange Commission, under the leadership of its Chairman Professor Shibli Rubayat-Ul-Islam, tried to engage the Japanese firm as a rescuer of the near-to-be-defunct listed company.
The BSEC Chairman recently told the Business Standard that Minori was in talks to inject Tk50 crore into Emerald Oil.
A member of the company's reconstructed board told TBS on Monday that Minori Bangladesh Ltd would inject Tk45 crore to provide the company with working capital.
The investor firm would get the sponsors' 30% stake in the listed company, if they take the responsibility to repay the defaulted loans.
The independent director of Emerald Oil Industries also informed TBS that the company took around Tk75 crore in loans from scam-hit Basic Bank and Bank Asia and with added interest the total bank liability has now reached to Tk120 crore.
The new board, as part of a constructive solution, urged the banks to get only the unpaid principal of around Tk61 crore and waive the interest.
The banks are positively handling the matter, and the board of Emerald Oil is seeking a 3-year grace period for the company to pay the rescheduled loan in a decade.
With the working capital needed and the loans regularised, the board of directors is seeing a great revival potential for Spondon branded rice bran oil as the new management has plans to export the oil to Japan alongside selling the heart-friendly cooking oil in the local market.
Once creating a vibe in the Bangladesh market, Spondon brought Tk276 crore in revenue for Emerald Oil in 2016 fiscal year.
Also the company had secured a decent profit margin then.
However, its shareholders were unlucky as the sponsors' loan scam hit the firm's business continuation too, despite the fact that many foreign brands are selling a lot of rice bran oil in the growing market of urban Bangladesh.
The independent director is very optimistic about the revival of Spondon oil as Minori Bangladesh's Managing Director Miya Mamun has a successful edible oil and food business in Japan.
Minori might arrange huge exports of rice bran oil to Japan's health conscious market from Bangladesh if Emerald Oil can arrest its costs of goods sold, which is expected to be very competitive against that in Thailand and Indonesia, said the independent director who requested anonymity.
The board is working to rebuild Emerald Oil's management and operation team sooner and also to select the suppliers and buyers.
Renewal of regulatory licenses, utility connections are on their way.
Also the hibernated company is getting ready to finalise its accounts for the last four fiscal years and call general meetings of shareholders with court approval.
Earlier, another independent director recently told TBS that the entire revival plan would need a constructive role on part of the government, banks, regulators, and all other stakeholders.
He also has urged no stock speculation based on the updates.