Business tycoon Avtar Lit is facing bankruptcy if he does not come to an arrangement with his creditors.
BizAsia understands that Lit was at the Bankruptcy High Court in London (case number 5106 of 2013) on Wednesday 19th February for a hearing on a bankruptcy petition filed against Lit by Geeta Kohli. The former director of Sunrise Radio has been in a battle with Lit for several years over various personal and business issues. The petition was supported by the AIB Group (UK) Plc.
The team representing Kohli said, “Upon hearing the parties and being presented by Mr Lit with a letter from Springfields Business Recovery and Insolvency Limited, confirming that Mr Lit had consulted them about the possibility of proposing an individual voluntary arrangement (IVA) to creditors, the Registrar adjourned the petition to 19th March 2014, in order to grant Mr Lit time to take further advice and if appropriate make proposals for an IVA.”
Lit has now until Wednesday 19th March to circulate concrete proposals for an individual voluntary arrangement (IVA) to creditors. If this fails, then a bankruptcy order will be made. This could result in Lit losing all of his assets including Lit Corporation – the holding company for Sunrise Radio (London) Limited (previously Buzz Asia Limited), offshore accounts and many others.
Lit has recently lost five companies after they fell into administration. Lyca Media has acquired five companies including 1458AM and 1035AM frequencies in the lucrative London market.
BizAsia attempted to contact Lit but he did not revert at the time of filing this article.