Bhubaneswar-based Orient Paper & Industries today said that operations at the company's joint venture company in Kenya, Panafrican Paper Mills (E.A), Kenya (Panpaper), in which the company holds 29.34 per cent equity and has a technical and management agreement, have stopped due to poor financial condition, culminating in appointment of receivers on March 19, on floating assets of Panpaper.
In view of these developments, the company board has decided to write off a sum of Rs 48.39 crore receivable from Panpaper against management fees, interest and loan (arising out of conversion of fees) due from Panpaper, subject to approval of Reserve Bank of India.
Out of this, the company had already made provisions aggregating to Rs 38.32 crore up to December 31, 2008.
The company said in a release that it will continue its best efforts to recover these dues.
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