NEW DELHI, May 1: JCT Ltd will submit a fresh debt-restructuring plan within the next four weeks to the consortium of financial institutions and banks led by the Industrial Finance Corporation of India (IFCI) and Allahabad Bank.JCT Ltd joint managing director Samir Thapar said the restructuring plan would primarily depend on the amount that the company can raise from the sale of its steel division and grey-textile division.Thapar said the company is hopeful of fetching a reasonably attractive price for its grey-textile division as it is spread in a sprawling complex of over 200 acres.
Though Thapar preferred to remain tightlipped on the potential buyers of the divisions, it is learnt that the company is already holding talks with buyers for both the steel and grey divisions.
JCT is also planning to increase the size of its proposed foreign-currency loan. Earlier, the company had planned to replace part of its rupee-term loan by an external commercial borrowings of $47 million.
Thapar said that onceJCT finalises its loan-restructuring package, it would make a fresh application to IFCI for standing a guarantee to its foreign-currency loan. Earlier, IFCI had demanded full details of the company's debt-repayment scheme before agreeing to be the guarantor.
On the possibility of a revival of the Polysindo deal, Thapar said that the company has informed both the banks and the institutions that the agreement between JCT and Polysindo has not been extended beyond April 30.
"We are not ready to sell off the synthetic division as the domestic market is showing a positive trend," Thapar said.
Thapar also said that the cancellation of the Polysindo deal had not affected company's relations with banks and financial institutions.
JCT joint managing director felt that with the company's performance improving it can expect some relief from the financial institutions and the banks similar to the package, which has been recently offered to the Modern group.
JCT's total outstanding on term loans with the FIs andbanks is estimated to be over Rs 200 crore. The company's total liability is estimated to be approximately Rs 650 crore and the annual interest charges are over Rs 100 crore.
Further, JCT is expected to record a net loss of over Rs 100 crore from its operations during the last fiscal. Thapar, however, feels that with the domestic synthetic-fibre market improving there will be a substantial improvement in the company's performance during the financial year.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
