Pune, Sept 21: A clear picture on the future of Kirloskar Investments and Finance Ltd (KIFL) is likely to emerge by December 1999 when the process for rescheduling and repayment of deposits is likely to be set in motion. KIFL has already approached the Company Law Board (CLB) for rescheduling of payments to depositors. KIFL's AGM likely to be held in December 1999 and board meeting sometime in October.Having burnt its fingers in corporate financing, there are plans to enter truck financing in a big way. Harisingh Champawat from Ahmedabad, who bought out Vijay Kirloskar's 14 per cent stake in KIFL, is a leading player in the truck financing business in Gujarat and Rajasthan and is seeking to expand into Maharashtra and Karnataka.
The company recently sent letters to depositors informing them that they would not be in a position to repay depositors with effect from August 31, 1999.
KIFL has 60,000 depositors all over the country with majority of them coming from Bangalore and Pune with deposits touchingRs 100 crore. KIFL was badly hit due to the slump in the real estate where the company had made substantial investments and defaults in corporate loans.
The Kirloskars still own 18 per cent of the company but are unable to bail out KIFL. KIFL has filed over 500 cases to recover dues. Defaults have been to the tune of Rs 150 crores. More than 150 unsold flats plus a few incomplete projects have locked up funds worth around Rs 18 crore.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page