Punjab National Bank serves notice to Silverline Technologies

By Mumbai: | 06 Jan 2003

Mumbai: Punjab National Bank has served a 60 days’ notice under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Act to Silverline Technologies.

The company is listed on the New York Stock Exchange and is the first IT company to be served notice under the new Act.

The bank has said that it would attach a large residential complex in Mumbai’s suburb of Andheri (East) and other properties if the company failed to repay an outstanding loan of over Rs 4 crore. In addition to the residential premises, the company owns office premises in Thane.

Silverline Technologies had recently announced its results for July-September 2002, wherein it had posted a net loss of Rs 6.5 crore for the quarter, as compared to a net profit of Rs 13.9 crore in the quarter ended 30 September 2001.

In September 1999 the company had commissioned the Silverline Software Technology Park in Thane, a hi-tech facility with a total area of over 110,000 sq ft spread over eight floors. The facility could accommodate 1,000 professionals and had a 512 KBPS dedicated frame relay network to the US.