Cash-strapped retail chain Subhiksha Trading Services on Monday ruled out declaring bankruptcy and said it may consider selling stake to raise funds as it struggles to arrange Rs 300 crore to meet immediate operational requirements.

The company is currently undergoing a corporate debt restructuring (CDR) exercise with lenders reviewing its books."No, not at all, as that (declaring bankruptcy) is not a solution. We have a viable business which is cash-starved and CDR will help us revive this," Subhiksha Trading Services Managing Director

He said the company, which has a total debt of around Rs 750 crore, may have to look to the equity route to raise money in order to find cash for preventing the company from stopping its operations. "If there is no money, we can't run operations but if there is no debt, we have to look at options like equity," he said.

The company's lenders, including 12 foreign and Indian private sectors banks, have sought a review of its balance sheet to speed up fund raising process.

"As part of CDR, the banks would need to get a current balance sheet rather than a March 31, 2008 balance sheet and they also want to ensure that events of the kind that happened in the last three-four months do not recur," he said.