Fresh Talks On Jk Synth Revival Plan

Creditor institutions of the troubled J K Synthetics and the promoters opened a fresh round of talks yesterday aimed at drawing a revival plan for the ailing company. The renewed initiative, however, came at a time when a key financial institution in the J K Synthetics' revival process admitted for the first time that turnaround of the company was a knotty affair. It also squarely put the onus of formulating a revival plan wholly on the promoters. The FI official's statement indicated the frustration of the creditors, and it could well mean that the rescue plan of the company could be delayed inordinately for want of a solution acceptable to all the concerned parties.

 

"We (financial institutions) can at best be facilitators for framing a revival plan. The plan actually will have to come from the promoters. We, on our part, are making serious efforts to find a solution," he said.

"There are various players involved in the process like the lenders, promoters etc. The participation of everybody is important. Also, there are multiplicity of other factors like the market forces which makes the problem all the more difficult," he said. He did not comment on the power struggle between Gaur Hari Singhania, the chairman and managing director of the company and vice-chairman Govind Hari Singhania.

He, however, indicated that the promoters need to settle their differences if a realistic plan for the ailing company is to be formulated.

Sources said Gaur Hari had, two months ago, offered to step down from the helm of the company to solve the imbroglio. However, he had laid down the condition that his son, Yadupati, should succeed him. He also wanted Govind Hari to give up his executive powers in the company. J K Synthetics, which was once a blue chip among Indian corporates, has over one lakh shareholders. The company last paid a dividend over five years ago. It has been accumulating losses during the past few years, and also has to contend with a huge debt estimated at close to Rs 700 crore. The rapid decline of J K Synthetics had even come up for discussion in the Parliament last month. Members of Parliament had sought an explanation from the government for the delay in framing a turnaround strategy for the company.