BPL, Sanyo tie-up expires

FI sources said the agreement 8212; which was signed early this year 8212; between BPL and Sanyo was valid only till September 30 this year. It is not known whether BPL has initiated any steps to extend the contract8217;s dates.

In the last corporate debt restructuring CDR meeting held in Mumbai last week, BPL8217;s corporate resturcturing plan worth Rs 1,467 crore was postponed till next meeting as the FIs sought more clarifications from the company. 8216;8216;We are expecting that BPL will provide us with more information in the next CDR meeting,8217;8217; said a source in ICICI Bank. BPL was to transfer its existing colour TV business, including the BPL brand, manufacturing, sales and service, marketing and distribution and infrastructure.

The business was valued at 80 million around Rs 368 crore. After its CDR was approved, BPL was to invest Rs 46 crore in the JV company and receive Rs 322 crore from Sanyo as net cash inflow.

FI sources said due to falling sales, BPL has made a loss of Rs 287 crore for the 18 months period ended September 2003 and taking the company8217;s debt burden to as high as Rs 1,465 crore.

The proceeds of selling the CTV business was to be used by BPL for meeting its commitment towards lenders and creditors. Sanyo was also planning to help the JV company to raise funds funds.

The residual company was expected to retain the healthcare business, CTV exports, monitor business, alkaline batteries, distribution business, automation business, PCB business and B038;W TVs.