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National Organic Chemicals Industries Ltd (Nocil) has filed applications with the Bombay High Court seeking directions to convene shareholder and creditor meetings for approving the schemes of arrangement of the company's restructuring proposal, a Nocil release said.

Under the proposal, all assets and liabilities of the petrochemicals and polymer divisions of the company will be demerged and vested as a going concern in Nocil Petrochemicals (NPL).

Those pertaining to the rubber chemicals division will be demerged and vested in Polyolefins Rubber Chemicals (PRCL) while the plastics product division with

subsidiary companies and certain investments will remain with Nocil.

The draft of the terms and conditions of the schemes of arrangement were approved by the board of directors at the meeting on December 24, 1999.

With the restructuring, the paid-up value of each Nocil share held by shareholders on the record date will be split in the ratio of 70:16:14 i.e. 70 per cent towards the NPL share, 16 per cent towards the PRCL share and 14 per cent towards the retention of the Nocil share.

The split ratio has been recommended to be a fair and reasonable for the restructuring proposal by chartered accountants C C Chokshi & Company and N M Raiji & Company, the release said.

The company statement identified four benefits of the restructuring. Firstly, all three divisions would be able to function as separately focussed independent entities with greater emphasis on their respective core competencies.

Secondly, Shell/Montell will subscribe to 49 per cent of the enhanced paid up share capital of NPL which will pursue substantial expansion and modernisation projects.

Thirdly, the shareholding of the Arvind Mafatlal Group in PRCL would be acquired by the Omkar Singh Kanwar Group and finally the overall value of the existing shareholding will be enhanced by virtue of all shareholders getting proportionate shares in all three companies.