SK Trims' bank accounts unfrozen following HC order

The bank accounts of SK Trims and Industries Ltd, a producer of garment accessories, have been unfrozen following a stay order from the High Court, according to a company disclosure.

Previously, on 14 September, the company had reported that its bank accounts were frozen by the Bangladesh Financial Intelligence Unit (BFIU) under court orders. The freezing of the accounts was done based on a recommendation from the Anti-Corruption Commission (ACC).

Yesterday, the company announced that on 18 September, the High Court issued a stay order overturning the metropolitan session judge's court decision from 11 August, which had led to the freezing of SK Trims and Industries' bank accounts.

The disclosures also read that as per the stay order of the high court, there is no problem on the company's banking operations from now. The stay order will be valid till 20 October 2024.

Following the unfreezing of the bank accounts, on Thursday, the shares price of SK Trims soared by 8.57% to Tk19 each at the Dhaka Stock Exchange (DSE).

Meanwhile, SK Trims and Industries had laid off its factory workers on 7 September amid a raw materials and financial crisis following the freezing of its bank accounts.

In a letter to the capital market regulator on 7 September, the garment accessories manufacturer stated that production will resume once the bank accounts are unfrozen, and workers, staff, and all regulatory bodies will be notified.

In another notice regarding the layoffs, SK Trims, having around 1,000 workers, explained that due to the freezing of its bank accounts, salaries and overtime for May, June, and July have been paid through personal financing.

Since June, raw materials could not be imported, resulting in a lack of work at the factory, it said.