Financial Daily from THE HINDU group of publications
Monday, Apr 05, 2004
Financial Daily from THE HINDU group of publications Monday, Apr 05, 2004 |
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Corporate
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Courts/Legal Issues HPL to seek `legal redress' on UTI order Our Bureau
Kolkata April 4 THE move initiated by UTI to bring an injunction on Haldia Petrochemicals Ltd (HPL) restraining the company from selling its movable assets except in the course of normal business has sent the company management into a huddle,, even as it declared that the entire course of action was `absolutely exparte'. "We have taken legal opinion and will seek appropriate redress from the court after making appropriate submissions to the authorities at the earliest opportunity. We will state everything," HPL's Executive Vice-President (Finance) and Company Secretary, Mr A. Bose, told Business Line. He assured that HPL's normal business will not be hampered in any way. He said that UTI was paid Rs 3 crore in February 2004 towards the servicing of the Rs 50 crore loan it had advanced to HPL as `optionally convertible debentures' in December 1999. "It was surprising that UTI preferred this course of action, keeping HPL totally in the dark. No notice was sent to HPL by UTI on their decision to move the Debt Recovery Tribunal," Mr Bose reiterated. Mr Bose also said that the Rs 3 crore that was paid to UTI on February 18 this year was in line with the CDR (corporate debt restructuring) norms. "As per the CDR sanction, HPL cannot make any preferential payment to any of its debtors," he said. A HPL release said that HPL is currently pursuing with all concerned (including UTI whose representatives were present during the CDR meetings although they were not part of the process) for their individual sanction of the CDR package. HPL which was fairly regular in servicing of its Rs 4,000-crore loan burden became irregular from middle of 2002. The release said that the payment made to UTI clears its dues till June 2002.
More Stories on : Courts/Legal Issues | Mutual Funds | Non-Performing Assets | Petrochemicals
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