• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Bangalore , Dec. 2

THE Karnataka High Court has allowed a petition by the Maharashtra Apex Corporation (Pvt) Ltd (MAC) and sanctioned its scheme of compromise and arrangement between it and its creditors, share, bond and deposit holders.

According to Mr Justice N. Kumar, who sanctioned the arrangement, the company owed Rs 110.37 crore to the deposit holders and the interest payable on March 31, 2002, amounted to Rs 19.95 crore. MAC also owed Rs 199.92 crore to bondholders along with Rs 31.55 crore. Totally, it owed Rs 361.85 crore to the deposit and bondholders.

The Court has directed the company to repay the amount in five years. Mr Justice Kumar said the time stipulated for repayment would be advanced by six months and the depositors and bond holders who deposited Rs 5,000 or less would have to be paid in six months in a single instalment.

Incorporated as a company on April 26, 1943, MAC had an authorised capital of Rs 40 crore divided into 2 crore equity shares of Rs 10 each and Rs 2 crore redeemable cumulative preference shares of Rs 10 each. It had issued 1.41 crore equity shares of Rs 10 each; its shares were listed on the NSE and the exchanges in Bangalore, Mumbai, Mangalore and Pune.

The company had not paid redemption amount on preference shares on the due dates in respect of repayment from September 2002 onwards. According to the company, the new regulations of the RBI in January 1998 had put it in grave difficulties jeopardising its resource mobilisation.

Following the downgrading by RBI, the crisis deepened, with the company's income decreasing from Rs 101 crore in 2000 to Rs 53.02 crore in 2001 and Rs 26.08 crore in 2002. When MAC had defaulted on certain payments, the High Court had been approached and the company undertook to come up with an arrangement for repayment of dues.

More Stories on : Courts/Legal Issues | Fixed Deposits | Maharashtra

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
REL to bid for coal-based project in UP

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line