Financial Daily from THE HINDU group of publications
Tuesday, Jan 27, 2004
Financial Daily from THE HINDU group of publications Tuesday, Jan 27, 2004 |
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Corporate
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Sick Units Hind Antibiotics wind - up notice put in abeyance Richa Mishra
New Delhi , Jan. 26 HINDUSTAN Antibiotics Ltd, set up as a trendsetter to bring in the latest technology and showcase local opportunities for domestic players, may just have got an extended lease of life. At a recent hearing, the Board for Industrial and Financial Reconstruction (BIFR) decided to put a show cause notice for winding up the company in abeyance. Considering the submissions and based on recommendations of the operating agency, IDBI, the BIFR Bench took the decision. It also granted more time to the company and its bidders to submit their comprehensive revival proposal to the agency. At the hearing, IDBI had submitted that after the issue of the notice, the company had submitted a proposal envisaging one-time settlement of dues of institutions and banks by paying 100 per cent of principal after sanction of scheme by the BIFR, the Bench noted. Further, the company would discharge the liabilities through sale of land subject to approval of the board of directors and Government of India - the main promoter. Though no fresh funds were envisaged from the Government, substantial reliefs and concessions were expected. As regards the settlement proposal, IDBI was of the view that a firm commitment from the Government for agreeing for sale of land must be in place before considering the proposal. IDBI said at the hearing that Sun Pharmaceutical Industries Ltd had also submitted a preliminary proposal for takeover and wanted to carry out due diligence of Hindustan Antibiotics before submitting a final proposal. IDBI also said that all the proposals received from the prospective bidders as well as the settlement offer from Hindustan Antibiotics could be compared so that a final view could be taken. In view of these developments and given the large size of the company, IDBI had requested the Bench to consider granting more time for submission of proposals, the board noted. The BIFR Bench, in its recent order, directed the bidders to satisfy the agency and the board on their ability to bring in funds for revival. "Only thereafter will they be permitted to carry out due diligence." The board directed one of the bidders, Hemant Thombare group, to submit its balance sheet to IDBI. The interested parties may file revised, improved bids together with their comprehensive and fully tied-up rehabilitation proposal within a stipulated timeframe with IDBI. The board restrained the secured and other creditors from initiating or pursuing their recovery suits against the company at this stage. "The secured and other creditors may inform the agency regarding their claims for inclusion in any rehabilitation scheme prepared for the company," the Bench said. .
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