Kirloskar Battery In Bid To Take Over Willard

Kirloskar Battery Ltd (KBL) has approached sick company Willard Storage Battery Ltd with the intention of taking it over.

However, the Board for Industrial & Financial Reconstruction (BIFR) in its recent order has invited a viable rehabilitation proposal with the means of finance fully tied up from interested parties to revive Willard Storage Battery Ltd.

Willard Storage Battery Ltd - which has been under BIFR ambit since March 1999 - was negotiating with KBL even without a BIFR's direction.

Taking note of the development, a two member bench of BIFR comprising its chairman P P Chauhan and member G Narayanan said, "KBL were seemingly interested in the acquisition of Willard Storage Battery Ltd for which negotiations were being carried on, even though the bench had not given any directions till then to initiate the process of change in management of the company which was required to be done in a transparent manner by issue of an advertisement for the purpose."

 

Issuing a notice as to why action should not be taken against them in terms of Sica, the Board has directed Willard Storage Battery Ltd and its promoters to submit their comments on their attempt to negotiate with another company (KBL) for the acquisition of Willard Storage Battery Ltd without any specific order from BIFR.

The bench has given an opportunity to the company and its promoters to show cause why further action to initiate the process of change in management of the company through advertisement in a transparent manner be not taken by the board as the present promoters had failed to submit a workable rehabilitation proposal.

Giving direction to the operating agency (OA) ICICI to prepare a rehabilitation scheme on their own as per Reserve Bank of India (RBI) guidelines, the bench said, "such a scheme could be made available to the intending bidders in the event, a change in management was explored."