Islami Bank has put assets of Rupsha Fish on auction to retrieve Tk78 crore in loan plus interest.
SM Amzad Hossain took the loan from the bank in the name of Rupsha Fish and Allied Industries Limited. Last week, the bank called for an auction to recover the money.
Amzad is now the chairman of Khulna Printing and Packaging. He was also the chairman of South Bangla Agriculture and Commerce Bank, a company listed on the share market.
Amzad Hossain, who fled to the United States, is accused of embezzling money from the bank.
Rupsha Fish and Allied own a 2% share of Khulna Printing. Amzad is also the managing director of Rupsha Fish.
Khulna Printing's Company Secretary Milan Khan could not be contacted over the phone.
In October last year, Khulna Printing decided to shut down its factory, following the freezing of the bank accounts of the company's chairman and managing director as per a court order.
On 21 October last year, the court ordered the freezing of all bank accounts of SM Amzad Hossain and all his companies in a money laundering case filed by the Anti-Corruption Commission (ACC).
Amzad Hossain has reportedly taken out loans on a false identity.
Earlier, in March last year, Bangladesh Financial Intelligence Unit (BFIU) directed banks to freeze accounts of SM Amjad Hossain, his wife Sufia Amjad and daughter Tazri Amjad.
Against such a backdrop, the listed company will not run its business for an uncertain period. But its board has decided to continue the legal battle, said in a statement filed on the Dhaka Stock Exchange (DSE) website.
That is why the company could not earn revenue in October-March of FY22.
At the end of the first nine months of fiscal 2021-22, its earnings per share stood at Tk3.06 negative.
Earlier, in 2015, Khulna Printing was compelled to close the factory as the National Board of Revenue locked their business identification number (BIN) over allegations of tax evasion.
The NBR reopened the BIN in 2018, and the company reopened the factory the following year. But the company could not run its business smoothly due to the Covid-19 pandemic. As a result, it continued to incur losses for the fifth consecutive year. Now, the company's liabilities have exceeded its assets.
In the last five months, its share price dropped 23%, and it closed at Tk8.8 on Tuesday at the DSE.