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BIFR gives Keltron Rectifiers, Kerala Govt a `final' chance

Richa Mishra

NEW DELHI, July 13

KELTRON Rectifiers Ltd (KRL) and the Kerala Government have been granted a ``last and final'' chance for revival of KRL by the Board for Industrial and Financial Reconstruction (BIFR).

Having heard the submissions at the recent hearing, the bench noted that some positive developments had taken place regarding settlement of company's dues towards Indian Bank, Kerala State Finance Corporation and the Ministry of Information and Technolog y.

``In view of the foregoing, no harm was seen in allowing three months' time more to the company, making it crystal clear that this was the last and final opportunity being granted to the company and the Kerala Government,'' the bench said.

``It was, however, clarified that the show-cause notice for winding up of the company will continue to remain operative in this duration,'' the bench said.

Moreover, in order to see that the matters are not delayed, a letter shall also go from the Board to the Secretary (Industries), making it clear that if all the remaining loose ends do not get fully tied-up within the given time, the bench will be constr ained to confirm the subsisting notice for winding up of the company, without further hearing, the Board said.

The company has been asked by the bench to settle the balance of the operating agency's (OA) fee of Rs 1.13 lakh within a given time, under confirmation to the Board.

KRL has also been directed by the Board to supply its up to date audited and provisional balance-sheets up to 2000-01, approved by its board of directors and auditors to BIFR, OA and the secured creditors.

Further, the bench has directed the company and its promoters not to dispose off or alienate in any other way, any fixed or current assets of the company without the consent of the secured creditors and the Board.

In case the factory/factories is still running, the current assets could be drawn down the extent required for its day-to-day operations, subject to keeping proper records thereof and routing all proceeds through the company's financing banks only, the b ench said.

KRL has been directed to submit to the OA, secured creditors and BIFR, its updated revival proposal as put to the Kerala Government taking into account the valuation report, techno-economic viability study report and VRS, as approved by the Government.

IIBI, the OA, is to process the company's proposal and other information received from it, the bench said. In case the proposal was acceptable to all concerned and took care of all the dues of the company, the OA shall submit the draft rehabilitation sch eme along with its report.

However, in case the company and the State Government fail to tie-up all the provisions within the given time frame, BIFR will confirm the pending show cause notice for winding up of the company, without any further hearing, the bench said.

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