The Hindu Business Line : Haldia Petro's debt recast, Basell investment cleared

THE empowered group of the corporate debt restructuring (CDR) of banks and financial institutions, which met in Mumbai on Friday, has cleared the debt restructuring package of Haldia Petrochemicals Ltd (HPL). The issue was hanging fire for a long time.

It also cleared the company's proposal for investing in the Basell NV acquisition programme, which is being carried out by a consortium led by The Chatterjee Group (TCG). TCG is a principal promoter of HPL too.

The CDR would be effective April 1, 2004. With this development, HPL has become the first such corporate body to come out of the CDR net.

According to the debt restructuring programme, HPL's equity base has increased from Rs 1,153 crore to Rs 1,410 crore. TCG and its associates had been asked to bring in fresh equity of Rs 150 crore.

It was earlier decided that the company would have to clear off debts worth Rs 468 crore by July 31, 2004. A loan of Rs 107 crore given by TCG was also converted into equity. The board of directors of HPL is, however, yet to formally accept these proposals.

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