Financial Daily from THE HINDU group of publications
Thursday, Feb 21, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Corporate - Sick Units


Richardson & Cruddas revival scheme declared failed -- ICICI to advertise for change in management

Richa Mishra

NEW DELHI, Feb. 20

TAKING note of the fact that the ailing Richardson & Cruddas (1972) Ltd (RCL) and its promoter, Bharat Yantra Nigam Ltd (BYNL), have failed to revive the company under the sanctioned scheme of 1995, the Board for Industrial and Financial Reconstruction (BIFR) declared the sanctioned scheme as ``failed''.

At the recent hearing, the Bench observed that the company's promoters were unable to extend any support to RCL as its own finances were not in good shape. The Board appointed ICICI as the operating agency (OA).

It directed the OA to advertise for change in management, inviting offers for takeover/leasing/amalgamation/merger for rehabilitation, with or without one-time settlement (OTS) of the dues of financial institutions (FIs) and banks including measures contemplated under Sections 18(2)(i) and 18(ii) of the Sick Industrial Companies (Special Provisions) Act, giving 60 day time for submission of offers.

BYNL, and the Union Government can also submit a scheme for rehabilitation of the sick company in response to the advertisement, with or without joint venture, the order said.

Further, the Bench directed the OA to prepare a draft rehabilitation scheme. Such a scheme is to be prepared by the OA within a stipulated time-frame and the same could be made available to the intending bidders who would also be free to submit a revival proposal of their own in response to the advertisement.

The advertisement will provide for rehabilitation of the company under various alternatives available in terms of Section 18, providing for takeover in full or in part, of the company, by way of leasing, amalgamation and/or merger, with the present company, the holding company or any other, with or without joint venture or with a co-promoter, and will ensure that the process of takeover shall not jeopardise in any manner the interest of the labour or any secured creditors.

Further, the incoming promoters shall take over full liability and ensure continuity of service of the workers and all dues as per industrial laws and also meet statutory liabilities in all respects including those of the State and the Central Governments. Such a proposal could also include one-time settlement (OTS) and VRS.

The OA would also send an interim status report to the Board after March 31, 2002 indicating, inter-alia, the position of offers received in response to the advertisement, the order said.

``If no concrete rehabilitation proposal with means of finance fully tied-up is received in response to the advertisement, the Board may consider passing further appropriate orders which may include issue of a show-cause notice for winding up of the company,'' the Order said.

Send this article to Friends by E-Mail

Stories in this Section
Cadila not to take IPO dose till 2005


Madhusudan cancels EGM -- 51 pc stake sale to Duravit hangs fire
SWC has no plans to offload stake in beer, liquor business
ICAI standards for joint ventures
NJMC petition against tribunal award rejected
Tata Engg writes off Rs 1,180 cr
ABB net up at Rs 65 cr; to pay 50 pc dividend
Positive signs seen in M&M revamp move
Canara Bank, LIC to take CDSL stake
Kyndal plans arm for knowhow sale
Six Continent to bolster Indian presence
DCA probing 6 Reliance cos
Alfa Laval in pact with 2 foreign cos for gasohol
Satyam in alliance with Hummingbird
Tata Steel ties up with Nippon Steel
OmegaTech, Vasta in marketing pact
Kale Consultants-IATA pact for `CEO Cockpit'
Richardson & Cruddas revival scheme declared failed -- ICICI to advertise for change in management
MphasiS hopeful of attaining targets
Alembic's new drugs to account for 12% turnover
IBP's Mathur hangs up his boots sans regrets


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line