Calcutta, Dec. 18: IDBI has agreed to give the promoters of Mangalam Cement two to three months to clear the company’s dues to financial institutions.
Earlier this month, IDBI had issued a notice to the company promoted by B. K. Birla, threatening legal action and even attachment and sale of its assets. Mangalam owes over Rs 180 crore to its lenders, which IDBI said, it must clear within 15 days.
Mangalam had offered to pay its lenders a little over Rs 135 crore for a one time settlement. At the meeting today, senior officials of the company sought time to clear the dues and promised to modify their earlier offer. Sources familiar with the discussions today said, “The lenders have informally agreed to give the management at least two more months to finalise a repayment package.”
“The funds—around Rs 135 crore—would be drawn from group companies as loans at an extremely low rate of interest. Though there are very little hopes of reviving the sick company, the group wants to buy peace,” sources said.
Most of the lenders were inclined towards accepting the offer made by Mangalam, when IDBI shot off the letter. The support of the other lenders helped Mangalam secure the breather. “Initially the Mangalam management had reacted by threatening to stop discussions, but they could not risk the consequences of backing out,” said sources in the B. K. Birla group.