SPGP Holdings, Hong Kong-based investor backed by a newly-formed employees’ union to take over clothing manufacturer Reid Taylor (RT) was on Tuesday directed by an NCLT bench in Mumbai to submit its unaudited financials for year 2017 and 2018 in an affidavit after they failed to provide their audited results in a hearing.

Pankaj Agarwal, director at SPGP, said his company’s networth as per audited financials for 2016 is $4 million and claimed its networth to be $7.5 million according to unaudited financials for 2018.

Agarwal was asked to submit SPGP’s unaudited financials with a self-attested affidavit to resolution professional (RP) and next date of hearing is fixed for January 10.

Tuesday’s developments deepened creditors’ doubts on source of funds of SPGP.

“This company has claimed it had $250 million for investment into Reid Taylor and they could not even produce updated audited financials.

Surely, there is something strange about this employee association and company it is backing.

We suspect it is just a front for defaulting promoters and would rather prefer that bankruptcy process continues and we move towards liquidation,” said an official from Finquest Financial Solutions, a Mumbai-based NBFC which has an Rs 815-crore exposure, one of largest among lenders to Reid Taylor.

Last month, RTI Limited Employees Association, a newlyformed association of people representing over 200 employees of company petitioned NCLT to allow them to find a buyer for RT, which was facing liquidation after lenders’ efforts to find a buyer proved futile. MS Prasanna, general secretary of association insists SPGO has enough funds to complete purchase.

“The company is based in Hong Kong where it is not mandatory to get accounts audited every year.

We are confident they will produce required documents on Jan 10,” he said.