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Saturday, Nov 27, 2004

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Addl capital from Kothari Sugars promoters for revival

Our Bureau

Chennai , Nov. 26

THE promoters of Kothari Sugars and Chemicals Ltd have brought in over Rs 47.30 crore as a part of a rehabilitation package approved by the AAIFR (Appellate Authority for Industrial and Financial Reconstruction).

In a communication to the stock exchanges, it has been stated that Parvathi Trading and Finance Company Private Ltd has acquired 4.73 crore shares, representing 57.17 per cent of Kothari Sugar's share capital.

The mode of acquisition is allotment pursuant to AAIFR order dated June 17 and the date of acquisition was November 23. Through this acquisition, Parvathi Trading, which brought in the Rs 47.30 crore, holds 59.19 per cent stake in Kothari Sugars. The total share capital is Rs 82 crore following inflow of funds under the rehabilitation programme, the communication said.

In April 1999, Kothari Sugars came under the purview of the BIFR, which ordered the winding up of the company in May 2002. Kothari Sugars appealed against the order in July that year and filed a revised rehabilitation package in January 2003.

Company officials last year had said the rehabilitation package involved a relief of about Rs 150-160 crore to bring down accumulated losses of Rs 233 crore to Rs 50-60 crore.

Kothari Sugars operates a sugar mill at Lalgudi near Tiruchi, with a capacity to crush 2,900 tonnes sugarcane a day, an 11 MW cogeneration plant and a 45 kl a day distillery.

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