132 crores and were not able to pay the balance till March 31, 2011, the due date of lapse of BIFR
Accordingly, this extraordinary general meeting is being convened to consider and approve the enclosed report of the Board of directors on such erosion and its causes, and the measures being taken as per the relevant provisions of SICA, and also to approve the reporting of such erosion to BIFR
in terms of Section 23 of SICA," the company said.
Debtor's misuse of SICA as reference with BIFR
is deliberately filed to seek an automatic stay on creditor enforcement against the company.
However, the company obtained an interim stay from the Madras High Court against the BIFR
RMGL's ability to improve the operational efficiency of the seamless pipe plant along with the profitability as well as to turn its networth positive and come out of the purview of BIFR
are the key rating sensitivities.
If it is admitted into BIFR
, the SDR process could be stopped, though a banker in know of the developments says the company's entire net worth has not been eroded, a prerequisite for being admitted as a BIFR
By making its net worth positive, this Cabinet approval will ease de-registration of HFCL from BIFR
RFL has been registered as a sick industrial company under BIFR
since January 2004, because of heavy losses incurred between 2000-01 (refers to financial year, April 1 to March 31) and 2003-04.
Just three years later, in 2003, Hindustan Photo Films' operations had deteriorated so much that BIFR
recommended winding it up.
This Cabinet approval will facilitate de-registration of HFCL from BIFR
by making its net worth positive.
While assigning the rating, ICRA has also taken into view the history of the defaults to Financial Institution (FIs) and waivers taken by FIs as a part of One Time Settlement (OTS) scheme, when it was under the purview of BIFR
As for the need for a special mindset, I can do no better than identify BIFR
, a tribunal designed not to adjudicate on rights and obligations, but to revive businesses.