Financial Daily from THE HINDU group of publications
Wednesday, Feb 01, 2006
Financial Daily from THE HINDU group of publications Wednesday, Feb 01, 2006 |
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Corporate
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Corporate Disputes No objection to HPL equity allotment to IOC, IDBI: TCG Firm on retaining majority stake Richa Mishra
New Delhi , Jan 31 IN a new twist to the tale of Haldia Petrochemicals Ltd (HPL), the Purnendu Chatterjee-headed The Chatterjee Group (TCG) is understood to have written to the West Bengal Government that it has no objection to the allotment of shares of HPL to IOC and IDBI if the West Bengal Industrial Development Corporation (WBIDC) transfers its shares to TCG, as agreed. Following the suggestion of the Chairman Company Law Board (CLB), Mr S. Balasubramanian, at the last hearing on January 23, TCG is said to have written to the West Bengal Government on this issue and forwarding a copy to the board. TCG, at that hearing, had submitted that it had no objection to allotment of shares of HPL to IOC and IDBI as long as it continued to retain the majority stake. TCG was asked to submit its proposal to the task force comprising nominees of the West Bengal Government and TCG for an amicable settlement over the allotment of shares to IOC. A copy was to be sent to the CLB. The whole dispute over the control of HPL came to the forefront in August 2005 when TCG moved the CLB over WBIDC's decision to allot 7.5 per cent stake of HPL to IOC. TCG, which claimed that it has about 53 per cent stake even after the allotment, argued that it had the first right of refusal to the shares. The proposed conversion of IDBI's Rs 135-crore debt into preference shares came into focus at the hearing when TCG argued that if it were allowed to represent the company, it would find a cheaper lender than IDBI and that IDBI debts could be pre-paid. It had also contended that it would come into minority status if the loans of IDBI were allowed to be converted into equity.
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