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Richa Mishra

In April 2001, the company requested the Bench to record its opinion for winding up the unit at the earliest as all possibilities for its revival had been explored and no workable proposal emerged. Consequently, the Board issued a winding-up notice in June 2001.

NEW DELHI, Oct. 17

THE Board for Industrial and Financial Reconstruction (BIFR) has said that Orissa Extrusions Ltd (OEL) cannot be resuscitated, as the parent company, Indal, now a part of the Aditya Birla group company Hindalco, had shown no interest in reviving it. It has ordered the winding-up of the company.

After reviewing the company's case, the Board stated that the lack of seriousness shown by the promoters in helping the aluminium extrusions company get out of the sick bay had prompted it to signal closure.

Recently, BIFR confirmed its prima facie opinion of winding up the company which was declared sick three years ago. It also noted that the proposal received in response to the show-cause notice issued for winding up the company was not acceptable to IDBI, a secured creditor.

After being declared sick in 1999, ICICI was appointed as the operating agency (OA) to examine the viability of the company and then formulate a rehabilitation scheme for its revival.

At the subsequent hearing, the Board had said ICICI had already explored, though informally, the prospects of change in management and had recommended to BIFR that there was no point in exploring the possibility. The Board, however, felt that Hindalco, which was the 74 per cent shareholder of Indal, the promoter of OEL, had both financial and managerial means to revive the company. It then gave time to Hindalco to submit a fully tied-up scheme with the OA.

ICICI, in March 2001, submitted that the promoters had failed to submit any revival package for the rehabilitation of the company even after the expiry of the three-month deadline.

In April 2001, the company requested the Bench to record its opinion for winding up the unit at the earliest as all possibilities for its revival had been explored and no workable proposal emerged. Consequently, the Board issued a winding-up notice in June 2001.

A late attempt was made by Jindal Aluminium Ltd (JAL) to take over the company despite the winding-up notice, the Bench noted. The proposal, however, did not find acceptance with IDBI.

Considering that there was no rehabilitation proposal with means of finance fully tied up for the Board's consideration despite ample opportunities given to all concerned, BIFR decided to confirm winding-up of the company.

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