Shaw Wallace and Company Ltd (SWC) has secured permission from the Calcutta High Court to sell its agrochem division to pay off its creditors. Kishore Chhabria's BDA Ltd did not oppose the prayer for sale.
The liquor major had moved an application and sought the court's approval to sell fixed assets of its non-core businesses, particularly the agrochem division.
S B Mookherjee and S N Mookherjee, counsels for SWC, argued that for the purpose of meeting liabilities of the company's creditors it is necessary to obtain permission from the court to sell fixed assets of non-core businesses.
It was submitted that sale proceeds are expected to be around Rs 40 crore and the same will be deposited with the court-appointed special officer, who will disburse the amount to the creditors.
Justice Amitabha Lala in his order granted leave to SWC to sell its fixed assets of its non-core businesses, in particular the agrochem division.
Earlier, in 1992 BDA had obtained an order from the court restraining SWC from selling its fixed assets without the permission of the court.
Now that both brothers have reached a compromise and have reconciled their differences, BDA has not objected to SWC's prayer for sale.
Following yesterday's court order on the agrochem business, SWC is now expected to follow the usual procedure for putting up the businesses for sale. The company has already made it clear that it would like to move out of all unrelated businesses and concentrate on the core businesses of liquor and beer.
Meanwhile, in mid-December UB group's bid for the three SWC brands _ Royal Challenge, Haywards and Director's Special _ would be taken up by the Calcutta High Court. UB has pitched in with a Rs 250 crore bid for the three brands, while SWC has made it intentions clear by defending the hostile bid. y next year
