NEW DELHI, May 7: The Board for Industrial and Financial Reconstruction (BIFR) has issued notices for closure to nine sick private sector companies saying those could not be revived on a long-term basis and all other possibilities of revival have been exhausted.

A recent BIFR order said that the Singhania Steels Pvt Ltd (SSPL), Eastern Explosives and Chemicals Ltd (EECL), Laxmi Sanmuga Spinning Mills Ltd (LSSML), Metelex Ceramics Ltd (MCL) Bell Remedies Ltd (BRL), Ashoka Alloy Steel Ltd (AASL), SN Corporation ltd (SNCL), Kamarhatty Co Ltd (KCL) and Shiva Minerals and Cement Industries Ltd (SMCIL), are not likely to make their networths positive within a reasonable time while meeting all their financial obligations and not likely to become viable in future.''

Giving reasons for the notices, the order said there was no concrete rehabilitation proposal before the board for consideration despite sufficient opportunities allowed to all concerned. No other party was available to takeover the units for rehabilitations and all possibilities had been explored and exhausted, it said.

Bifr had sanctioned some schemes with consensus of all the concerned parties to rehabilitate some of the units, but they failed due to various reasons.

Bifr had sanctioned a draft rehabilitation scheme to revive Singhania Steels and directed the promoters, who had already deposited Rs 35 lakh, to bring in additional Rs 60 lakh by December 1996.

As the promoters were not in a position to bring in the required fund, the board ordered to issue advertisements for change of management but no concrete proposal was received in response.

The Bifr bench observed that the present promoters had not shown any seriousness about the rehabilitation of the company and not complied with the directions of the board. ``It is just, equitable and in public interest to wind up Singhania Steels'' order said.

Eastern Explosives was declared sick in 1991 and Industrial Finance Corporation of India (IFCI) was appointed an operating agency to formulate a rehabilitation scheme for the company, the order said.

A draft rehabilitation scheme was circulated to all the concerned parties but the board observed the scheme had not moved in the envisaged direction.

The board concluded that the scheme was not capable of being modified since the company had suggested certain basic changes like induction of another copromoter, technical upgradation and diversification of productline.

The operating agency also advertised for change of management, in response to which proposals from Indo-Gulf Industries and S Jhunjhunwala and Associates were received. But they also failed to give any concrete proposal the order said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.