Financial Daily from THE HINDU group of publications
Thursday, May 20, 2004
Financial Daily from THE HINDU group of publications Thursday, May 20, 2004 |
||
|
|
||
|
Corporate
-
Sick Units FACOR begins steps to demerge into three entities — May get fresh equity of Rs 54.62 cr C.R. Sukumar
Hyderabad , May 19 FOLLOWING the directives of the Board for Industrial and Financial Reconstruction (BIFR) through the recently sanctioned restructuring package, Ferro Alloys Corporation Ltd (FACOR), the Rs 208-crore ailing ferro alloys major, has initiated steps towards demerging itself into three independent entities. According to a FACOR senior official, the ferro alloys division consisting of plant at Garividi in Vizianagaram, Andhra Pradesh would be transferred to a new company being formed in the name of FACOR Alloys Ltd (FAL) with registered office in Andhra Pradesh. The company's steel division consisting of steel melting and rolling plants located at Nagpur in Maharashtra would be transferred to a new company being formed in the name of FACOR Steels Ltd (FSL) with registered office in Maharashtra. The company's charge chrome division consisting of charge chrome plant and mines in Orissa would remain with the existing company, FACOR, official told Business Line. The company has also initiated steps towards splitting the equity share capital among these three entities as per the restructuring scheme cleared by the BIFR. The existing paid-up equity capital of Rs 20.35 crore would be split among FSL, FACOR and FAL in the ratio of 20:40:40. This results in FAL having a paid-up equity of Rs 4.07 crore, and FACOR and FAL Rs 8.14 crore each. According to a FACOR official, the company was advised to split up shares in respect of shareholders holding equity shares of the company as on the record date, July 1, 2004. After the split, the existing promoters' group along with the Switzerland-based joint venture partner, AOA Securities Anstalt, will pump in funds in the form of equity to the tune of Rs 54.62 crore as per the restructuring scheme. The Swiss partner proposes to hold 50 per cent equity in FACOR, FSL and FAL. Following the induction of fresh funds, the paid-up equity of FACOR would go up to Rs 18.61 crore, that of FAL to Rs 19.59 crore and of FSL to Rs 20.65 crore. As part of the scheme, the company proposes to sell its five diesel generator sets aggregating 50 MW at a cost of Rs 39 crore and utilise the proceeds to reduce institutional outstanding. Further, the company proposes to sell its 30MW captive power plant at Garividi for Rs 19 crore and the 20 MW captive power plant located at Ranida in Orissa for Rs 18 crore. The company expects to get an additional of Rs 2.75 crore through sale of miscellaneous surplus assets, the official said.
More Stories on : Sick Units | Bearings | tings & Forgings
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, 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
|