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.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.