Financial Daily from THE HINDU group of publications
Thursday, Nov 20, 2003
Financial Daily from THE HINDU group of publications Thursday, Nov 20, 2003 |
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Corporate
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Sick Units Fresh proposal for one-time settlement of Keltron liabilities Mony K. Mathew
Thiruvananthapuram , Nov. 19 THE Enterprises Reforms Committee, which looks into the issues relating to the rehabilitation of public sector undertakings in Kerala, has submitted a fresh proposal to the State Government for the one-time settlement with the banks of the liabilities of Kerala State Electronics Development Corporation (Keltron). The panel's proposal, prepared after a meeting with the officials of State Bank of India, the leader of the consortium of banks, envisages settlement of liabilities to the tune of Rs 57.85 crore in three instalments. The consortium comprises SBI, State Bank of Travancore, Canara Bank and Indian Overseas Bank. The settlement figure was reached at a meeting the Industries Secretary had with the consortium on December 16, 2002. The amount includes the sanctioned limit of Rs 41.80 crore, encashed bank guarantees of Rs 1.51 crore and devolved letters of credit worth Rs 14.53 crore. As per the proposal forwarded by committee to the State Government, the first instalment of Rs 25.85 crore has to be paid to the banks in March 2004, followed by Rs 20 crore in October 2004 and Rs 12 crore in March 2005, according to sources. The committee has pointed out in the proposal that the current dues in the books of accounts of the company worked out to Rs 221.84 crore as on March 31, 2003, and the actual debit by the banks amounted to Rs 94.71 crore. The one-time settlement will mean the banks waiving normal as well as penal interest of Rs 36.86 crore as debited by them. The sources said that at the meeting the bank officials wanted a concrete proposal from the company with commitment on dates for payment of the amount. The proposal could then be taken up with the higher authorities of the respective banks for the final approval. The proposal, if cleared by the Government, will be incorporated in the restructuring package being worked out by committee for Keltron. The committee is expected to take it up for consideration this month-end.
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