NEW DELHI, NOV 10: The Board for Industrial and Financial Reconstruction (BIFR) has issued a notice to wind up UB group company, Mangalore Chemicals and Fertilisers Ltd (MCF). A two-member bench of BIFR comprising chairman P P Chauhan and member G Narayanan said prima facie it was of the opinion that the company was not likely to become viable on a long-term basis and hence, it was just and equitable and in public interest that it be wound up.The board observed that all possibilities of rehabilitating Mangalore Chemicals had been exhausted and bench had not received any rehabilitation proposal with means of finance fully tied up despite sufficient opportunity to promoters and workers union.
The bench has fixed February 4, 2000, to hear objections and suggestions to the show-cause notice. It also said IDBI, operating agency, would consider a rehabilitation proposal from the promoters if they submit it by November 25, 1999 and deposit Rs five crore in an escrow account. Workers' cooperative could also submit a rehabilitation proposal along with a deposit of Rs 1 crore or a bank guarantee of equivalent amount, the board said. The bench also directed Karnataka govt to take a final decision on reliefs and concessions sought by the company.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page