Financial Daily from THE HINDU group of publications
Sunday, Apr 25, 2004
Financial Daily from THE HINDU group of publications Sunday, Apr 25, 2004 |
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Corporate
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Sick Units BIFR okays show-cause notice to wind up Andhra Cements Richa Mishra
New Delhi , April 24 ANDHRA Cements Ltd (ACL), a part of the Kolkata-based Duncan Goenka Group, seems to have exhausted all the lifelines offered to it for revival. The Board for Industrial and Financial Reconstruction (BIFR) has given its nod to the show-cause notice (issued in February 2003 and kept in abeyance) for winding up the company. In its recent order, the board noted that the company had failed to keep up to the deadline set by the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide its order of April 2002 as well as the subsequent opportunity given by BIFR. Besides, the board has not fully tied-up the draft rehabilitation scheme before it to consider. ``We confirm the show-cause notice for winding up, which was issued on February 14, 2003. This opinion may be forwarded to the High Court concerned ,'' the order said. The BIFR, in November 2003, directed the company to submit a viable rehabilitation scheme, after taking into account the sale of assets as a part of the scheme, within a stipulated timeframe to the operating agency, IDBI. Andhra Cements, vide its letter dated December 24, 2003, stated that it had submitted the modified rehabilitation scheme to the monitoring agency. Subsequently, a joint meeting of all parties concerned was held in February 2004. The BIFR observed that most of the participants of the joint meeting had reservations about some parts of the draft rehabilitation scheme and the company was requested to submit a revised proposal, keeping in view the deliberations at the meeting. However, no revised scheme was received. The board also noted that the company and its promoters had not complied with its order of November 2003.
More Stories on : Sick Units | Regulatory Bodies & Rulings | Cement
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