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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Info-Tech
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Sick Units Markets - Stock Markets Icnet plans revival after securing TIIC waiver Raja Simhan T.E.
Chennai , Aug. 2 THE Chennai-based Icnet Ltd is out of liquidation and plans a revival in business after a gap of eight years. Trading in the company's securities also commenced today in The Bombay Stock Exchange, and about 100 shares were traded under the `Z' group. Trading in the company's scrip was suspended in 1998, after the company went into liquidation because of mounting debts. The exchange, however, revoked the suspension last week after Icnet creditors and Madras High Court accepted a revival package from the company, a company official said. One of the secured creditors, Tamil Nadu Industrial Investment Corporation Ltd (TIIC), has waived an outstanding of Rs 27 crore to it from Icnet. However, this is subject to Icnet repaying Rs 6 crore in the next seven years - starting July 1, 2006 - to TIIC, said Mr C. Padmanabhan, Chairman and Managing Director, Icnet. About a decade ago, Icnet provided e-mail service to corporates and had around 1,500 employees. However, it suspended its operations in 1996 after the telecom department withdrew its connectivity. The company had offices in 27 Indian cities and three overseas, he said. Icnet went into liquidation in 1998 after one of the creditors, Gujarat Lease Financing Ltd, filed a winding up (of Icnet) petition in the Madras High Court, he said. The company is reviving its business with plans to foray into ITES (information technology enabled services), he said. According to Mr Padmanabhan, Icnet will allot equity shares each of Rs 10 each at a premium of Rs 20 each to all the unsecured creditors of the company and thus convert their debt into equity in accordance with the scheme of compromise/arrangement as sanctioned by the Madras High Court. The total claim of the unsecured creditors was Rs 18.73 crore. Some of the unsecured creditors include Wipro Finance, Karnataka Financial Services, L&T Finance, Garden Finance, Sowbhagya Advertising and Travel Corporation (I) Ltd, he said.
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