The Hindu Business Line : Bakelite Hylam on revamp mode

Bakelite Hylam Ltd (BHL) here has proposed a series of steps to restructure the company. It has vested the authority to the board to sell surplus / non-critical IPR (intellectual property rights), formulation, technical knowhow / trademarks, etc to raise additional funds for revival.

The ailing company also wants to relocate the operations of its Sanathnagar plant either fully or partly to any other location and to establish unit(s) in excise / sales tax exempt locations for various products.

To raise necessary funds, BHL was willing to sell or develop the surplus land at Sanathnagar & Jeedimetla, as well as land rendered surplus at Sanathnagar after relocation of that plant.

BHL is engaged in the manufacture of laminates, sheets, rods and tubes, phenolic moulding materials and phenolic resins. The board had appointed State Bank of Hyderabad as the operating agency with directions to conduct a techno-economic viability study and prepare a revival scheme for the company. It was referred to the BIFR in 2004.

To sell Ezra shares

The company is now keen to sell the shares of Ezra Trading & Finance Company Ltd to a listed company. Members at the 59th annual general meeting of the company held on November 29, 2006 also gave the board the authority to transfer, after the OTS of bank and the unpaid dues of employees and statutory dues as per the sanctioned scheme have been settled, through a demerger, after the assets and liabilities of the respective businesses along with the personnel on rolls, (the residual assets to be held by the mother company - BHL).

The company should issue fresh equity shares in the new companies on a proportionate basis (i.e) 3 shares in residual BHL, 2 shares in Nacharam unit and 5 shares in Balarshah unit for every 10 shares of BHL.

More Stories on : Restructuring | Sick Units | Diversified

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