Chase Bright Steel was incorporated in 1959. It is engaged in the manufacture of cold drawn and turned bright bars of mild steel, high-carbon, free cutting alloy and special steels. The bright bars produced are in different sizes which are mainly used by loco builders and railway workshops and by all bearings, electric motors, general engineering, automobile, cycle and ancillary industries.
The company's profitability was severely affected by various reasons like insufficient availability of raw materials, disturbed conditions in the automobile sector and the gulf war in 1991. During 1993-94, the company suffered a serious set back in its working results due to various reasons such as withdrawal of International Price Reimbursment Scheme recessionary conditions in the domestic as well as international automobile and auxiliary industries etc. Added to this was the poor performance of newly installed imported equipments.
The Company's proposed One Time Settlement with Allahabad did not materialise. The Honorable Bench of BIFR in their hearing on 6th September, 1999 permitted Allahabad Bank to take legal recourse to recover their dues. The Bank has filed an application in the Debts Recovery Tribunal (Mumbai) to recover their claims from the Company for an amount of Rs. 20.7 crores with interest. The Company has filed a suitable reply to the above contesting their claim and have filed a counter claim on the Bank.