The Hindu Business Line : EID Parry set to acquire New Horizon Sugar

While the company officials could not be contacted, sources in New Horizon said that the Murugappa group company had come up a winner in a bidding process. They said that a number of sugar companies such as Rajshree Sugars and Bannari Amman Sugars had quoted for the plant.

Sources noted that it made sense for EID Parry to takeover New Horizon because it is located close to EID Parry's own sugar unit. New Horizon has a plant with a capacity of 2,000 TCD.

Sources said New Horizon and its associate company, Arunachalam Sugars, got into trouble when a co-generation power unit of Arunachalam Sugars did not perform as projected. Also a Nidhi company of the same promoters failed which may have impacted the sugar units.

A number of banks including Indian Bank, Vijaya Bank and City Union Bank, and IREDA, have been affected by the failure of the twin sugar units.

While New Horizon has already come up for sale, the fate of Arunachalam Sugars is not yet known, though sugar industry sources feel that it could also come up for sale in due course.

It is learnt that after the monies are collected from the buyers of the units, the distribution of it among creditors would be decided by the Madras High Court.

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

Stories in this Section
ITC board okays Rs 14,000-cr investment plan over 5-yr period — Growth strategy covers outlays for acquisitions

Century Plyboards plans Rs 100-cr investment in timber plantation

Ennore Foundries to go in for $15-m ECB

Flue gas project: REL surprised by Dahanu eco body's guarantee demand

EID Parry set to acquire New Horizon Sugar

Hyundai's second plant to be ready for new small car

ONGC mulls redesigning coal bed methane project