Financial Daily from THE HINDU group of publications
Thursday, Nov 20, 2003
Financial Daily from THE HINDU group of publications Thursday, Nov 20, 2003 |
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Corporate
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Sick Units BIFR asks Incab `promoter' to deposit Rs 5 cr Richa Mishra
New Delhi , Nov. 19 IN the case of Incab Industries, the Board for Industrial and Financial Reconstruction (BIFR) has directed the likely promoter-to-be, Mr A.K. Chakraborty, to deposit a sum of Rs 5 crore in a no-lien account to revive the company. It stated that the show-cause notice issued for winding up the ailing cable manufacturer would, however, remain in force, "If the funds as stated above are not deposited by Mr Chakraborty, the Board would confirm winding up of the company," a BIFR Bench said. The Bench has directed Mr Chakraborty to deposit the sum in a no-lien interest-bearing account with State Bank of India, which is the operating agency. Besides, he has also been asked to negotiate with all the secured creditors, and submit a fully tied-up rehabilitation proposal. He has been directed to convince SBI on the sources of funds stipulated in the means of finance, including availability of a soft loan from the Jharkhand Government. If Mr Chakraborty deposits the sum and submits a rehabilitation proposal, SBI would examine them, hold a joint meeting and submit a draft rehabilitation scheme on or before December 20. Further, the bank has been directed by the Bench to complete its due diligence on the resourcefulness of Soundcraft Industries Ltd (SIL), and inform the board by November 22. Soundcraft had agreed to provide financial support to the revival scheme to the extent of Rs 25 crore over a period of two years. The board, at a recent hearing, said "no proposal could be sanctioned if there was any disagreement by even a single party." Considering the case, the Bench noted that a revised proposal submitted by Mr Chakraborty, a consultant representing the Kolkata-based Adar Holdings Ltd, envisaged induction of Rs 15 crore as equity and another Rs 10 crore as unsecured loans in the company. The Bench observed that Mr Chakraborty's proposal was acceptable to most of the secured creditors, stakeholder Tata Steel (Tisco) and the workers' unions of Jamshedpur and Pune. But, UTI, one of the secured creditors, had said that it would accept 75 per cent of the principal amount instead of 50 per cent as envisaged in the proposal. Punjab National Bank (PNB) and Canara Bank had submitted that though they had received their one-time settlement (OTS) dues from the Malaysia-based Leader Group and were holding a decree for the interest amount, the two were not agreeable to waive off the interest amount, the Bench noted. Leader Group is one of the overseas stakeholders of Incab. Allahabad Bank, had however, submitted that although it was also in the same position as PNB and Canara Bank, it was agreeable to waive the interest, if the rest of the secured creditors did the same.
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