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PNB approves Ajanta Tubes' wind-up plan
Neeraj Saxena
New Delhi, March 22: Punjab National Bank (PNB) has given its approval to wind up Pasupati group's Ajanta Tubes Ltd (ATL). At a Board for Industrial & Financial Reconstruction (BIFR) meeting, bank representatives said that against the asset valuation of Rs 26 crore in 1996, the company's one-time settlement (OTS) offer of Rs 9 crore was not acceptable to it. The board had appointed PNB as an operating agency. There was no positive response to the advertisements issued by the bank for change of the management either. According to PNB, an OTS offer of Rs 20 crore plus interest would have been acceptable to it, but since even this was not forthcoming, winding-up appeared unavoidable. ATL representatives argued that the valuation of assets was undertaken by PNB in 1996, when owing to favourable market conditions, the value was assessed at a high price. Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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