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MUMBAI, Feb. 18

THE Debt Recovery Tribunal (DRT) has appointed a court receiver for sale of assets of SPIC Petrochemicals Ltd, promoted by SPIC Ltd, the flagship of the A.C. Muthiah group.

The total outstanding amount due by the company is Rs 1,100 crore which includes an amount of Rs 553 crore due to Industrial Development Bank of India (IDBI) and Rs 119 crore to State Bank of India.

The lenders' list also reportedly includes ICICI Bank, Dena Bank, Bank of Baroda, Union Bank of India and Indian Bank.

The DRT III, Mumbai Presiding Officer, Mr A.G. Mishra, said in the order dated February 14, ``There is no hope for commencement of the work of SPIC Petrochemicals...and no hopes whatsoever, indicating that it will come out of financial crisis, but actually it is sinking... considering the outstanding of various financial institutions, it is desirable to sell the assets of the company''.

The order provides an interim relief to the applicant ICICI Bank which had recalled its loans worth Rs 289 crore last December following non-payment of dues by the company.

A restructuring exercise was ruled out by the DRT. ``It is a premature death before commencement of work. The losses have been caused to the company, so, question of restructuring does not arise as it is yet to take-off'', said the order.

SPIC Petrochemicals was promoted by SPIC Ltd in 1994 to implement a project to manufacture purified terapthalate acid and polyester fibre yarn.

Spic Petrochemicals has the option to appeal to a higher court against the DRT order.

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