HPL management’s meet with lenders remains unfruitfulJuly 4th, 2012 - 1:31 am ICT by IANS
Kolkata, July 3 (IANS) The Haldia Petrochemicals Ltd (HPL) management’s meeting with lenders for getting Rs.10 billion worth of working capital for the cash-strapped firm did not work out Tuesday.
The State Bank of India (SBI) representative, leading the consortium of lenders, stated that banks had their own constraints and limitations to fund the company, the second largest maker of polyethylene in India and co-promoted by the West Bengal government and The Chatterjee Group(TCG), in the current situation.
HPL, also the largest petrochemical firm in eastern India, currently has an accumulated loss of more than Rs.1,200 billion against a peak net worth of Rs.28.44 billion, while the total debt is around Rs.37 billion.
The last board meeting of the company, whose ownership issue is yet to be resolved, in June saw a fiercely-fought boardroom and court battle, where Partha Bhattacharyya resigned from the post of managing director.
Bhattacharyya, the former Coal India chairman, had joined the company 13 months back.
His resignation, however, did not go down well with the lenders as the revival plan of the company, which called for a Rs.10 billion working capital, was actually worked out by him.
Company sources said without him, the lenders were not feeling confident that the plan could be properly implemented.
The SBI representative, who refused to divulge his name, said: “The lenders have their own problems and limitations.”
State Industry Minister Partha Chatterjee, who is also the chairman of HPL, however, said: “I hope they have understood our argument. We are hopeful of the fresh working capital loan from the lenders.”
Chatterjee pointed out that the plans of getting investors like Mangalore Refinery and Petrochemicals (MRPL), a subsidiary of Oil and Natural Gas Corporation (ONGC), and Indian Oil Corporation (IOC) to pick up stakes in HPL, have been shelved.
“My primary concern is revival of the company and only after it is achieved, the plans of getting IOC or MRPL will be considered,” he added.
- Bhattacharyya resigns as Haldia Petrochemicals MD - Jun 19, 2012
- HPL plans to hike production for turnaround - Jul 11, 2012
- Bengal minister becomes HPL chairman - Mar 27, 2012
- HPL awaits nod for product swapping terms in next board meeting - Aug 04, 2012
- HPL eyes two projects to beat financial crisis - Oct 26, 2011
- Bengal to seek legal opinion on Haldia verdict - Oct 29, 2011
- HPL's revival only after resolving shareholding dispute: Godrej - Nov 15, 2011
- Chatterjee Group chief meet Mamata ahead of HPL board meet - Mar 26, 2012
- Haldia Petrochemicals expects Rs.10,000 crore turnover this fiscal - Jun 11, 2011
- Haldia Petrochemicals on road to recovery: Official - Jun 15, 2011
- Chatterjee Group plans Rs.4,000 crore investment in Bengal - Jul 06, 2011
- Haldia Petrochemicals talking to RIL for market segregation - Aug 19, 2011
- 'Bengal minister's appointment violative of Constitution' - Apr 18, 2012
- Haldia Petrochemicals outlines Rs.4,000 crore investment plan - May 30, 2011
- 'Mamata government open to solving Haldia Petrochemicals' problems' - May 28, 2011
Tags: bank of india, bhattacharyya, capital loan, chatterjee group, coal india, company sources, eastern india, haldia petrochemicals ltd, hpl, indian oil, indian oil corporation, industry minister, ongc, partha chatterjee, revival plan, sbi, state bank, state bank of india, west bengal government, working capital