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Journalism of Courage
NEW DELHI, NOV 9: The face-off between the financial institutions and JK Synthetics has intensified with the former turning down the revival package submitted by the Singhanias for avoiding possible liquidation of the company.
The FI consortium comprising ICICI, IFCI, IDBI, LIC, UTI and others have, in a written statement, stated that no such proposal would be accepted till the company furnishes a concrete plan envisaging sale of any of its units with full details of such a deal. The liability of JK Synthetics with the FIs has reportedly gone over Rs 800 crore.
In the revival package, the Singhanias had proposed immediate sale of two of its units at Jhalawar and Kota for repaying substantial part of it debt. Top level institutional sources said that till the company gives them names of a potential buyer of the units, the institutions are not ready to accept the proposal.
“Further, we are insisting on a consolidated proposal on the part of the company as a whole and not what the Singhania brothers would like to do in parts,” sources added.
Significantly, the Kota and Jhalawar units, which are under the control of Ramapati Singhania and Govind Hari Singhania, are currently facing a lockout. “Under such circumstances sales of the units would be extremely difficult,” sources stated. The FIs had proposed the sale of the units when they were fully operational.
But owing to differences between the promoters the proposal could not materialise, sources said.
Currently, JK Synthetics is controlled by the three-way arrangement between the company’s chairman Gaur Hari, who is controlling JK Cement, Govind Hari, who is looking after the polyester units, and, Ramapati and Nidhipati, who are controlling JK cord, JK Acrylic and the PGR group. Sources further said that the FIs have decided to recall their loans as the company has been proposing similar plans for the last two years without any effect. The institutions are currently apprehensive about the fact the company may get into the BIFR net, sources stated.
