WSN Bureau NEW YORK, NY: Bombay Palace Restaurant Inc filed a petition Reorganization under the Chapter XI at the Federal Bankruptcy court here on September 21. The Petition was filed because a restaurant chain purchased by the company had tax liabilities of more than $2 million and the restaurants “were under the danger of being by the Internal Revenue Service.
The Chapter XI protection would keep the taxmen and any other creditors from making any claims. or seizing any of the restaurants while the company presents a reorganized plan, which would take about 9 months.
Sant Singh Chatwal the president of Bombay Palace Inc said that the Bombay Palace Restaurants do not have any tax problems but the Beefsteak Charlie’s restaurant chain, which he brought in September 1987, had the more. than 2 million tax and other liabilities. He expects to recover within two years.
Chatwal is a former Indian Air Force pilot who served under Emperor Hail Selasi of Ethiopia. He owns 50% of the stock of Bombay. Palace Restaurant Inc which is a public company and is traded in the New York Stock Exchange.
Article extracted from this publication >> September 29, 1989
