The Telegraph
Friday , June 20 , 2014
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HM to seek lender nod to sell foundry

Calcutta, June 19: The management of Hindustan Motors plans to meet the company’s lenders later this month to obtain their approval to divest the forging and foundry units at the Uttarpara car plant.

The move will help the beleaguered car maker to partly clear workers’ dues.

The maker of the Ambassador car had earlier sought the state’s help to close the forging and foundry unit. The unit had been suffering a loss of Rs 1.5 crore every month before the company suspended production on May 24 citing financial stress.

Company sources said the management was optimistic that it would be able to obtain the approval from the lenders.

The company has also asked for more time to chalk out a revival strategy after the government asked the management to come up with a turnaround plan during a tripartite meeting on June 17.

The company did not submit a written assurance today that the state labour secretary had sought at the meeting.

HM, however, maintained that the management was hopeful of clearing the workers’ wages. It has also informed the state of the steps it is planning to undertake to restructure the organisation and reduce its liabilities.

Union sources at the car plant said the management had indicated that it would be initiating a process after discussion with the lenders to clear the dues of the workers.