BS Reporter / Chennai/ Hyderabad November 20, 2006
Spectrum Technologies USA (STUSA), a minority shareholder in the beleaguered Spectrum Power Generation Limited (SPGL), has approached the city civil court seeking to restrain the Asset Reconstruction Company (Arcil) from going ahead with the process of bidding the lenders' interests in the company. SPGL runs a 208-megawatt gas power project in Kakinada.
With the total outstanding debt of SPGL reaching Rs 1,040 crore as on March, 2005, most of the lenders, including IDBI, converted their debt portion into equity and subsequently transferred their entire interests to Arcil for sale early this year.
In its petition, Spectrum Technologies contended that the refusal of its proposal for debt restructuring before initiating the bidding process by Arcil was in violation of their earlier out-of-the court understanding.
Arcil is said to be in the process of finalisation of bids received from several institutions, including Deutsche Bank AG.
Spectrum Tech moves court against Arcil plan
BS Reporter / Chennai/ Hyderabad Nov 20, 2006, 09:03 IST
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