Business Daily from THE HINDU group of publications
Tuesday, Dec 30, 2008
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Tuesday, Dec 30, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Industry & Economy
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Real Estate & Construction States - Tamil Nadu
Mr A.C. Muthiah M. Ramesh Chennai, Dec. 29 The SPIC Chairman, Mr A.C. Muthiah, and HDFC will together develop Adyar property, which belongs to the family of Mr Muthiah. “A small portion of the property is being put up for real estate development jointly with HDFC,” Mr Muthiah told Business Line. He said this in response to a question as to whether a part of the Adyar property was sold to HDFC and Appasamy Real Estates for Rs 340 crore. Denying that he had “sold” the property, Mr Muthiah said he was only developing it jointly with HDFC. On the Appasamy connection, he said, “HDFC may have roped in Appasamy, we don’t know about it.” He also denied that the deal had anything to do with raising funds for paying off the debts of SPIC. SPIC, promoted by Mr Muthiah’s family, owes a consortium of 30 banks Rs 2,845 crore. Asset Reconstruction Company of India Ltd (ARCIL) has been buying the SPIC loans from various banks with a view to consolidating them for better bargaining power. ARCIL hopes to sell off the loans. As a sweetener, it might want to convert a portion of the debt into equity, so that the company’s leverage comes down. Mr Muthiah’s family holds 31.05 per cent of SPIC’s equity. He has said on several occasions that he would not give up control of the company. There is speculation in the market that he might be raising funds to inject further capital into SPIC. When asked about this, he denied that there was any connection with the Adyar property development and SPIC. More Stories on : Real Estate & Construction | Housing Development Finance Corporation Ltd | Tamil Nadu | Fertilisers
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