IDPL plea to sell IDBI shares to settle dues
By Praveen Chandran | 11 May 2002
Mumbai:
The Board of Industrial and Financial
Reconstruction (BIFR) has asked Industrial Development Bank of
India (IDBI) to examine the plea of Indian Drugs and
Pharmaceuticals Ltd (IDPL) to grant permission for selling its
shares to settle around Rs 40 crore dues to Andhra Pradesh Gas
Power Corporation (APGPC) and Andhra Power Transmission
Corporation (APTC).
IDPL
had approached BIFR with a proposal to settle the dues to the
state-owned power distributors through the sale of shares
corresponding to 2.88-mw worth of power purchased by the company
earlier.
IDBI has been directed to examine the request of IDPL in consultation with all concerned authorities and submit its recommendations within a stipulated time. IDBI is the operating agency for the financial restructuring of IDPL. IDBI sources say the financial institution will fix the sale price in consultation with IDPL, APGPC, APTC and the Securities and Exchange Board of India soon.
IDPL, vide its letter dated 15 February 2002, had reiterated its request for grant of permission under section 22-A of the Sick Industries Act for selling the shares to the power suppliers to pay the arrears as on date due to APGPC and APTC amounting to Rs 8 crore and Rs 31.25 crore, respectively.
The company has informed BIFR that the power distributors are threatening to initiate coercive action against it for the recovery of dues. BIFR was also informed that APGPC is contemplating disconnection of power.
IDBI sources, meanwhile, say the Hyderabad-based Natco Pharma Ltd (NPL) has obtained a financial restructuring package from IDBI, allowing the company to postpone its debt payment by two more years from October 2001 to 2003, and convert its interest outstanding into 12-per cent cumulative redeemable preference shares to the tune of Rs 5.5 crore.
NPL has sought the shareholders approval for the issue of the preference shares to IDBI through an extraordinary general meeting scheduled on 20 April 2002. The company now proposes to approach the other financial institutions and banks for a similar package. It has an outstanding loan component of about Rs 28 crore, the sources say.
IDPL
had approached BIFR with a proposal to settle the dues to the
state-owned power distributors through the sale of shares
corresponding to 2.88-mw worth of power purchased by the company
earlier.IDBI has been directed to examine the request of IDPL in consultation with all concerned authorities and submit its recommendations within a stipulated time. IDBI is the operating agency for the financial restructuring of IDPL. IDBI sources say the financial institution will fix the sale price in consultation with IDPL, APGPC, APTC and the Securities and Exchange Board of India soon.
IDPL, vide its letter dated 15 February 2002, had reiterated its request for grant of permission under section 22-A of the Sick Industries Act for selling the shares to the power suppliers to pay the arrears as on date due to APGPC and APTC amounting to Rs 8 crore and Rs 31.25 crore, respectively.
The company has informed BIFR that the power distributors are threatening to initiate coercive action against it for the recovery of dues. BIFR was also informed that APGPC is contemplating disconnection of power.
IDBI sources, meanwhile, say the Hyderabad-based Natco Pharma Ltd (NPL) has obtained a financial restructuring package from IDBI, allowing the company to postpone its debt payment by two more years from October 2001 to 2003, and convert its interest outstanding into 12-per cent cumulative redeemable preference shares to the tune of Rs 5.5 crore.
NPL has sought the shareholders approval for the issue of the preference shares to IDBI through an extraordinary general meeting scheduled on 20 April 2002. The company now proposes to approach the other financial institutions and banks for a similar package. It has an outstanding loan component of about Rs 28 crore, the sources say.