Top officials in PAL said that they have already written to the Paris-based Peugeot to help them tide over the financial crisis faced by the company. ``We have approached the French company and they have indicated that they will start talks from September onwards on retirement of old debts,'' officials said. PAL is asking the French firm to owe responsibility for the Rs 195 crore funds raised from Indian FIs and banks.

After the French firm decided to quit India to concentrate on its home market, it is Premier Automobiles which is facing the brunt of all the creditors, customers and investors. As of September 1996, PAL-Peugeot's total outstandings are as high as Rs 377crore.

In fact, ICICI has already threatened that it will have no other option but to attach the assets of PAL-Peugeot Ltd if it fails to meet its commitments to the financial institution. The beleaguered car maker owes more than 32 crore to ICICI and was unable to pay back due to recession in the automobile industry and the resultant sagging sales.

A ICICI team has already evaluated the plant and is also speaking to other auto makers for the sale of the company's Kalyan plant. ICICI's desperation stems from the fact that many other lenders of the auto company are planning to move court to recover their locked funds. In fact, Standard Chartered Bank has already filed a petition with the Mumbai High Court to recover its Rs 40 crore loan. The case has been adjourned till next week.

It may be recalled that PAL and Peugeot have formed the joint venture in 1994 which went public in December 1995. The company was producing Peugeot 309 and 118 NE and 1.38 D in its Kalyan plant. After the departure of theFrench promoters, the company's production schedule has gone haywire and only few 118 NEs are produced. The company also scaled down its production schedule to three days in a week to tide over the current financial crisis.

The Doshis of PAL, who are facing the investors' and creditors' wrath, have even decided to sell off its plant near Mumbai to the best bidder.