Ifci Asked To Release Ads Seeking Offers To Manage Jk Cotton

It has further directed the IFCI to circulate it to the members of the various chambers as well as to provide a transparent profile to all the intending bidders. After receipt of the bids, the status report is to be submitted to the bench in four weeks. The IFCI was further directed to get the valuation of assets of JK Cotton Mills done by chartered accountants and engineers and submit the same to the bench within 6 weeks.

It allowed a bid for the same by improving upon and revising its proposal, as per the guidelines of the Reserve Bank of India which envisage that the promoters contribution in these circumstances should be at least 30 per cent which, in this case, amounted to Rs 75 crore.

 

The BIFR order came after P K Saraf, financial adviser to JK Cotton Mills, told the bench that as per the earlier direction, the management had improved its offer by proposing to pay 25 per cent of simple interest dues to the institutions banks. The promoters contribution, he claimed, amounted to Rs 27 crore. However, he said that the promoters could hike the figure to 30 per cent, amounting Rs 75 crore. The bench observed that the case has been pending for long and despite sufficient opportunities given, the promoters had failed to bring up the acceptable CTS cum revival proposal with the scheme fully tied up.