The Hindu Business Line : Core Healthcare proceedings before BIFR stand abated

FOLLOWING the Asset Reconstruction Company (India) Ltd (ARCIL) intimation of taking over the assets of the Ahmedabad-based Core Healthcare Ltd (CHL), the Board for Industrial and Financial Reconstruction (BIFR) has abated the company's pending reference before it.

In its recent order, the BIFR Bench said: "It has been intimated by the ARCIL on December 9, 2004, that they have taken possession of the company's assets under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI). Keeping in view the above position, the Board cannot proceed further in the matter and the reference of the company pending before the Board, shall stand abated."

The Bench noted that the secured creditor had objected to the company's reference to BIFR on the grounds that the balance-sheet based on which CHL had approached the Board did not represent true and fair picture of the company's accounts. The Board had then appointed IDBI as the operating agency (OA) to conduct a special investigative report (SIA) to enquire into the matter and restructure the company's balance sheet, if required.

After considering the SIA report and the company's reply the Board had concluded that CHL had filed its reference in March 2001, after more than 60 days of finalisation of its accounts as well as the company's Board of Directors had formed their opinion about its sickness. Hence, the Board had rejected the reference as time barred despite noting that the net worth was fully eroded. Against the BIFR order, CHL had moved to the Appellate Authority, which in November 2004 while disposing of the appeal, set aside BIFR's order. The Appellate Authority remanded the case to BIFR to take further steps under the SICA. However, before the Bench could consider the company's reference again in compliance with AAIFR order, it had been intimated by ARCIL about taking possession of the assets, the bench observed in the order.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Fire at Sirpur Paper Mills

Novartis to sell TB bulk drug biz to Sandoz

Apollo Tyres not to hike prices this quarter

No move to cut prices: Volvo MD

Sundar Chemicals set to launch sugar substitute

L&T bags Rs 61-cr project in Qatar

P&G may gain strength in marketshare war here

`It is too early to predict impact'

Chitrakoot setting up steel plant near Chennai

Govt invites Aramco, NIOC for alliance with HPCL, BPCL

Core Healthcare proceedings before BIFR stand abated

STC turnover up 29% in April-Dec