Pakistan mills call ‘fraud’ in Dan River case
April 29, 2008,
Karachi, Pakistan – With an estimated $30 million in Pakistani textiles hung up by the Dan River bankruptcy, a group of the country’s mills has retained lawyers to explore lawsuits against Dan River and Indian parent company GHCL, possibly in both the United States and India.
Approximately $10 million in merchandise is sitting at U.S. ports accruing demurrage, or carrying charges for holding currency, according to the TMA. Another $10 million of product is in the pipeline, and an additional $10 million in payments is already owed to exporters in Pakistan, the association said.
Complicating the issue, goods sold through other GCHL entities – Baker and Best Manufacturing in the United States, which handle institutional business; and the Roseby’s home textiles chain in the U.K. – were invoiced as Dan River, according to S.M. Obaid, chairman of the TMA export sub-committee and owner of textiles manufacturer Toweller’s Ltd.
“We feel this is a clear-cut case of fraud and we are trying to prove it through legal means,” he told HTT.