Financial Daily
from THE HINDU group of publications

Friday, August 17, 2001



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BIFR puts out revised revival scheme for Dunlop

Our Bureau

KOLKATA, Aug. 16

THE Board for Industrial and Financial Reconstruction (BIFR) has finally circulated among all shareholders a detailed revised rehabilitation (DRS) for Dunlop India Ltd (DIL), requesting them to submit their views within October 11.

The DRS was submitted by the management a few months ago. The next hearing regarding finalisation of the company's revival scheme is likely to be held on October 19 or 20.

According to DIL sources, the existing ``holding operation'' will remain closed both at the Sahanganj factory in West Bengal and the Ambattur factory in Tamil Nadu since no funds against hypothecation of the company's charged and uncharged properties are likely to come in the foreseeable future.

It may be mentioned that DIL approached both the West Bengal and Tamil Nadu governments separately for a total loan of about Rs 50 crores against hypothecation of property. Though both the governments showed an interest in sanctioning the loan so that th e ``holding operation'' could be carried out, given the BIFR's current initiative in the matter of re-examining the DRS, both the governments have taken a back seat on the loan issue.

Meanwhile, the union leaders at Sahaganj factory have suggested that the single largest equity stakeholder of the company, Mr. M.R. Chhabria, should sell the company and pay workers their dues, failing which they have threatened to start an agitation.

Related links:
Delay in BIFR nod `will hit Dunlop revival'
Revised revival plan -- Dunlop shareholders' meet on May 16

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