NEW DELHI, JAN 29L: The Industrial Finance Corporation of India has refused to stand guarantee to JCT Ltd's proposed $47 million external commercial borrowings programme unless the company submits a specific proposal for repayment of its outstandings with FIs. The M M Thapar-promoted JCT's total outstanding with the FIs and the banks is estimated to be over Rs 220 crore. The company also has outstandings with sundry debtors.The ECB programme was part of its major revamp of residual businesses such as the cotton textile and the steel divisions. The company plans to replace Rs 130 crore of its long-term rupee debt in these arms by its proposed ECB.
Institutional sources said IFCI has set the loan repayment schedule as a precondition for standing guarantee to the ECB. The sources further said that JCT is yet to show "anything in concrete" to the FIs regarding the sale of its synthetics division to Polysindo, which is expected to fetch Rs 414 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
