The Board for Industrial and Financial Reconstruction (BIFR) has given its nod for an Rs 213-crore revival package for Mangalam Cement Ltd (MCL). The cut-off date for the scheme is April 1.
The scheme envisages a one-time settlement of dues to financial institutions. As per the scheme, the secured lenders are to be Rs 122.13 crore by September, settling on full and final basis their entire liabilities.
The scheme envisages a capital expenditure of Rs 70 crore for a power plant. The additional working capital is estimated at Rs 21.09 crore based on working capital requirement of Rs 36.26 crore and current year’s inventory levels.
MCL was declared sick in May 2002 and IDBI was appointed the operating agency to formulate and submit a rehabilitation scheme under the Sick Industrial Companies (Special Provisions) Act. The latest hearing was called to consider objections or suggestions to the draft rehabilitation scheme (DRS). IDBI submitted that it had no objection to the DRS and that the net worth of the company would become positive immediately on implementation of the scheme. The accumulated losses would be wiped out in 2006-07.