The Hindu Business Line : WBIDC seeks advisor to manage sick cos' accounts

IN a bid to give special thrust to the disinvestment of sick companies under its ambit, the West Bengal Industries Development Corporation (WBIDC) will soon be appointing an advisor for management of the accounts of the companies already on the block.

Eight local firms have put in their intent for selection as advisor to the disinvestment process.

The total duration of the assignment is said to be six months from the date of awarding of the contract by the WBIDC.

Speaking to Business Line, Mr Gopal Krishna, Managing Director of the corporation, said that both the technical and financial bids from prospective firms have been received and the last date for this is already over.

On how soon the advisor would be appointed, Mr Krishna said it is most likely to happen by November 15, 2004.

The purpose of appointing an advisor, according to him, was to obtain the best realisable market value for the companies and also to get the funds unlocked expeditiously from the accounts, where the assets have been taken over by the WBIDC individually or jointly, with other financial institutions or where the courts have appointed Receivers (Official Liquidator) with permission.

All the companies are said to be joint ventures, with the WBIDC holding 24 per cent and the respective owners 76 per cent.

Mr Krishna said that the objective was to get maximum realisable value for the sick companies, and this job was sought to be done with the help of experienced professionals.

According to the terms of reference set out, the advisor for managing the accounts should have specialised knowledge and experience in evaluating diverse types of assets, both physical and financial.

It must also capable of handling assignments involving sale of assets, shares or through leave & licence arrangements.

It is learnt that valuation of the fixed assets and identifying the prospective buyers would be the main selection criteria for evaluation of the advisor for the said purpose.

The companies listed to be sold by the WBIDC are Metallica Kansons India Ltd (which used to manufacture metal accessories for leather goods), Artonex Export Import Pvt Ltd, a food processing unit at Falta Export Zone, Winman Industries Ltd (decorative laminates), Greenfield Fodder Industries at Phulbari, Jalpaiguri (palletised cattle feed), Cellulose Containers Pvt Ltd (manufacturers of laminated composite containers made of paper inside laminated with aluminium foil and/or plastic), Rock Pet Chem (P) Ltd, Falta (PET bottles), Blue Plast Extrusions (P) Ltd (manufacturer of co-extruded five-layer brown film) and the Arambagh-based Shree Pashupatinath Potato Storage Pvt Ltd ( storehouse for potato & perishable vegetables).

The eight firms in the fray for the advisor's job are K.C. Sarkar & Co, Sumedha Fiscal Services (P) Ltd, K.K. Chanani & Associates, Dhandhania & Associates, Srei Capital Markets Ltd, Suvidha Consultants (P) Ltd, Roy & Ghosh and Ghosh Surveyors & Valuers (P) Ltd.

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