| Duncans Industries’ chairman G. P. Goenka talks to shareholders after coming out of the company’s 9th AGM in Calcutta on Wednesday. Picture by Kishor Roy Chowdhury.
Calcutta, Sept. 10: Duncans Industries’ chairman G. P. Goenka today assured shareholders who hold fixed deposits with the company they will be repaid once the debt restructuring package is in place.
The company had mopped up Rs 90 crore through fixed deposits almost three years ago.
The company failed to place the accounts for the 18-month period ended March 31 at the meeting. The company could not access the data at its fertiliser plant, shut down in March last year, and therefore was unable to publish the accounts, Goenka said.
The company will soon be referred to the corporate debt restructuring cell by State Bank of India, the lead banker. The other financial institutions who will participate in the debt recast are ICICI and IDBI, he added.
“The CDR cell will take 90 days to sort out the issue,” he said.
Meanwhile, shareholders have passed a resolution allowing permanent status for the chairman and one-third of the directors on the company board as desired by the financial institutions.
According to Goenka, the institutions insisted that the chairman and one-third of the board stay on till the restructuring process was over.
The financial institutions have also stalled the demerger of the tea and fertiliser businesses.
On the Kanpur fertiliser plant, Goenka said the working capital for running the unit had been completely eroded as the company was yet to receive Rs 360 crore from the government as urea subsidy.
Goenka said the CDR process would look into the issue of reopening of the fertiliser plant. It would also give special treatment to fixed deposit holders, he added.
The company’s outstanding debt at the moment stands at Rs 600 crore. It will approach the Allahabad High Court to recover the amount due from the government as fertiliser subsidy.