Avon has been asked to submit a comprehensive rehabilitation proposal for the sick company to the department of heavy industries and IDBI by the Board for Industrial and Financial Reconstruction (BIFR). Responding to the offer for takeover and amalgamation issued by IDBI, the operating agency, Avon has recently held discussions with the management of the sick company on reliefs and concessions to be granted by the Government. A two member bench comprising its chairman PP Chauhan and member G Narayanan said IDBI would examine Avon's proposal, prepare a rehabilitation proposal, hold a meeting and submit its report to the board.

Stating that it would have normally confirmed its primafacie opinion of winding up the company, the board said it had decided to give one last opportunity to the company and its promoters keeping in view the interest of the livelihood of workers. Cycle Corporation was declared sick by BIFR in 1992 and show cause notice for winding up the company was issued by the board in July, 1993.