Calcutta, Nov. 29: Mangalam Timber Products Ltd, a B K Birla group company, has come out of the Board for Industrial and Financial Reconstruction (BIFR) net.

Following a financial restructuring and turnaround in the business, Mangalam’s net worth had turned positive.

The company has applied to the BIFR for a deregistration as it has ceased to be a sick company any more.

The matter was heard at the BIFR hearing on November 16 last wherein IDBI, the monitoring agency, and State Bank of India, State Bank of Hyderabad and State Bank of Travancore ? bankers to the company ? and other stakeholders did not object to this process.

Accordingly, BIFR has ordered that MTPL ceased to be a sick industrial unit under the Sick Industrial Companies (Special Provisions) Act, 1985 and struck off its name from the list under its purview.

MTPL was registered with BIFR as a sick company in December 1998 and the board sanctioned a revival scheme on February 2, 2001. The scheme involved infusion of funds from the promoters as unsecured loans, deferment of term loans, waiver of unpaid interest as well as part conversion of interest into equity.

The scheme was implemented in full as the promoters brought in unsecured loan of Rs 10 crore, institutions and banks also granted relief and concessions as envisaged in the revival scheme.

The company, on its part, paid all term loans to institutions and banks and a part of the term loans was repaid ahead of schedule. An application was filed before the BIFR seeking the approval to the proposed reduction.

Meanwhile, the company recorded a net profit of Rs 2.88 crore for the year ended March 31, 2005. It took into account the deferred tax assets available to the company in the form of tax shelter available to it on account of carry forward business losses and unabsorbed depreciation. The company’s net worth became positive as on March 31, 2005.