Financial Daily from THE HINDU group of publications
Thursday, Jun 13, 2002
Financial Daily from THE HINDU group of publications Thursday, Jun 13, 2002 |
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Corporate
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Sick Units IDBI to hold meeting on Kanoria revival Richa Mishra
NEW DELHI, June 12 THE Industrial Development Bank of India (IDBI) has been directed by the Board for Industrial and Financial Reconstruction (BIFR) to hold a joint meeting of all the parties concerned to discuss the proposed changes in the draft rehabilitation scheme (DRS) for Kanoria Industries Ltd (KIL) before June 21 and submit its report. At the recent hearing, the company was directed to settle the issues with all the secured creditors and also submit the desired information to the Directorate of Income Tax (DIT) within a stipulated time. KIL was also directed to furnish the details of agreement reached with various parties to IDBI, the operating agency (OA). Mulling over the submissions at the recent hearing, the Bench noted that there was a broad consensus on the terms of the DRS circulated. The company submitted that the scheme proposed by it could not be sanctioned/implemented for want of consensus by all concerned and the current production at 55 per cent of the installed capacity was not generating enough cash to repay the dues as per the proposed DRS. Therefore, it was required that either the cut-off date of the scheme be amended to a future date or the repayment schedule be suitably amended in line with the revised cash flow, the company submitted. Further, the Karnataka Government submitted at the hearing that the approval of the high-powered committee to the reliefs and concessions envisaged in the scheme was awaited. Besides, DIT had stated that the company had not submitted the information sought by it to enable it to consider KIL's request, the Bench noted. The banks were agreeable to sanction reliefs and concessions as per the RBI guidelines and requested that the promoters be directed to bring in 30 per cent of the cost of the scheme and sacrifices envisaged by the banks and institutions as promoters' contribution towards means of financing. "The matter was required to be discussed at a joint meeting of all concerned so that all the issues could be sorted out,'' the Bench said.
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