Financial Daily from THE HINDU group of publications
Tuesday, Aug 03, 2004
Financial Daily from THE HINDU group of publications Tuesday, Aug 03, 2004 |
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Corporate
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Sick Units Agri-Biz & Commodities - Foods & Food Processing BIFR proposes winding up of Regent Agro Richa Mishra
New Delhi , Aug. 2 AFTER exhausting all options to turnaround the Andhra Pradesh-based ailing company Regent Agro Products Ltd (RAPL), producers of coconut products, the Board for Industrial and Financial Reconstruction (BIFR) has confirmed its opinion on winding up the company. At a recent hearing, the Board observed: "Despite having allowed enough time and opportunity, it had not been possible to formulate any acceptable revival scheme for the company enabling it to make its net worth exceed the accumulated losses within a reasonable time while meeting all its due financial obligations." The BIFR Bench further noted that the company is not likely to become viable in the future and in public interest RAPL be wound up. It, therefore, confirmed its earlier prima facie opinion formed on September 24, 2003 to wind up the company in terms of Section 20 (1) of the Sick Industrial Companies (Special provisions) Act (SICA), 1985. The Bench directed that the opinion be forwarded to the concerned High Court. It also directed that in terms of the SICA Act the company should not dispose of or alienate in any other way any of its fixed and current assets without prior approval of the Board and the charge-holders till such time as an official liquidator was appointed by the concerned High Court. The Bench, however, did not grant further time in the light of delays in implementing the directions of the Bench and not submitting the rehabilitation proposal with means of finance fully tied up.
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