The unsecured creditors opposed the prayer for a moratorium on the grounds that the company had already violated the courts order
Hundreds of unsecured creditors of Shaw Wallace & Co (SWC) yesterday opposed the companys plea to seek one-year moratorium on inter-corporate deposit (ICD) outstandings amounting over Rs 164.59 crore in the Calcutta High Court.
SWC moved the petition in the court of Justice R K Mitra to repay the unsecured creditors, who had initiated winding up proceedings against the liquor giant.
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The unsecured creditors, however, opposed the prayer for a moratorium on the grounds that the company had already violated courts order by defaulting the instalment.
Had SWC obtained the order of one-year moratorium on ICD outstandings, the corporates concerned would have been affected adversely. Justice Mitra adjourned the case for hearing on Wednesday.
S B Mookherjee, P C Sen, S N Mokherjee and Tarun Aich, counsel for SWC, also sought the appointment of a special officer who will use the companys funds to meet statutory liabilities as well as repay its various creditors.
SWC is expected to receive nearly Rs 35 crore by September-end from the sale of its consumer product division, the petition said. Besides, the company will be able to generate nearly Rs 15 crore from other means, the petition said.
The liquor and beer divisions were doing extremely well, the counsel said adding given a reasonable time, the company will be able to meet ICD liabilities from its own resources.
It would be in a position to place before the court a complete three-year repayment plan for its unsecured creditors, the counsel informed the court. SWC said the board of directors of the company has approved the detailed ICD repayment plan prepared by a merchant banker on May 30 this year.
The company expects to mobilise Rs 452 crore from internal accruals, sale of non-core assets and fresh infusion of funds. Besides, the plan envisages generation of Rs 270 crore from its operation between 1997-98 to 1999-2000, the counsel said.
SWC prayed for stay on various orders on repayment for one year and keep the new petitions for repayment in abeyance, too. It prayed the court to order SWC to deposit the proceeds from the sale of the consumer products division in the court.