The Hindu Business Line : HPL to move against UTI order

THE move initiated by UTI to bring an injuction on Haldia Petrochemicals Ltd (HPL) restraining the company from selling its movable assets except in the course of normal business, sent the company management into a huddle today, even as it declared that the entire course of action was `absolutely exparte'.

"We have taken legal opinion and will seek appropriate redress from the court after making appropriate submissions to the authorities at the earliest opportunity. We will state everything," HPL's executive Vice-President (Finance) and Company Secretary, Mr A. Bose, told Business Line.

He assured that HPL's normal business would not be hampered in any way.

He said that UTI was paid Rs 3 crore in February 2004 towards the servicing of the Rs 50-crore loan it had advanced to HPL as `optionally convertible debentures' in December 1999.

"It was surprising that UTI preferred this course of action, keeping HPL totally in the dark. No notice was sent to HPL by UTI on their decision to move the Debt Recovery Tribunal," Mr Bose reiterated.

Mr Bose also said that the payment of about Rs 3 crore that was paid to UTI on February 18 this year was in line with the corporate debt restructuring

norms. "As per the CDR sanction, HPL cannot make any preferential payment to any of its debtors," he said.

A HPL release said that the company is currently pursuing with all concerned (including UTI whose representatives were present during the CDR meetings although they were not part of the process) for their individual sanction of the CDR package.

HPL, which was fairly regular in servicing of its Rs 4,000 crore loan burden, became irregular from the middle of 2002.

The release said that the payment made to UTI clears its dues till June 2002.

For the beleaguered company, which was just preparing to come out of a dark phase this fiscal (with a maiden net profit), the development as well as the sanctions sought to be imposed by UTI, was surprising and one that caught the company totally unawares.

HPL, which concluded its RBI-approved CDR process in January this year also has in the pipeline a public issue in June.

Gas Authority of India Ltd is also slated to pick up a stake in the company as part of its restructuring process.

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