Avon Keen To Take Cycle Corporation

Avon Cycles has shown interest in taking over ailing public sector Cycle Corporation of India Ltd (CCIL).

The Board for Industrial & Financial Reconstruction (BIFR) has asked Avon to submit a comprehensive rehabilitation proposal for CCIL to the Department of Heavy Industries and operating agency, Industrial Development Bank of India (IDBI).

Responding to the offer for takeover and amalgamation issued by IDBI, the operating agency, Avon has recently held discussions with the management of the sick company on reliefs and concessions to be granted by the government.

In its last order, BIFR had directed IDBI to issue advertisement in leading newspapers within two weeks inviting offers for the Takeover/leasing/amalgamation/merger for rehabilitation of the company.

 

A two member bench comprising BIFR chairman P P Chauhan and member G Narayanan said, IDBI would examine Avon's proposal, prepare a rehabilitaion proposal and submit its report to the board.

Stating that it would have normally conformed its prima facie opnion of winding up the company, the board said it had decided to give one last opportunity to the company and its promoters keeping in view the interest of the livelihood of workers.

However, the bench added in the event of no comprehensive rehabilitation scheme with the means of finance fully tied up emerging, it would confirm its prima facie opnion to wind up CCIL.

BIFR said workers of the company could constitute a worker's co-operative and submit a fully tied up rehabilitation scheme to IDBI.

The workers had earlier submitted a revival proposal envisaging the central government as the promoter.

The government's representative in a submission before the bench has requested BIFR to allow resonable time to the Department of Heavy Industries to follow up with Avon and any other party interested inthe revival of Cycle Corporation and said the government was not interested in closing down CCIL.