Scheme To Recover alls-In-Arrears'

McLeod Russel, which is being merged with Eveready Industries, is working on a detailed scheme to recover calls-in-arrears of over Rs 60 crore.

According to finance director, R S Jhawar, the scheme has almost been finalised and would be submitted to the Calcutta High Court. The company's Rs 302-crore rights-cum-public issue in 1995, for funding the acquisition cost of Union Carbide in the same year, had faced a shortfall in final call money of Rs 60 crore in view of depressed market conditions.

The high court will now fix a date for payment of arrears, Jhawar said. If the defaulting shareholders fail to respond within the deadline, their shareholding will be reduced in proportion with the amount outstanding, he added. Considering the prevailing market conditions, where McLeod Russel shares are being quoted at half the issue price, the reminder, according to stockmarket sources, is unlikely to elicit favourable response from defaulting shareholders. The company's share capital, in that case, will come down marginally.

 

It had received Rs 240 crore towards application, allotment and call money up to March. Sources said that a majority of the unpaid arrears was accounted for by the Rs 270-crore public portion of the offer, while the rights portion has more or less been fully paid-up.

Short term loans amounting to almost Rs 33 crore has been through pledge of investments by its group companies. Intercorporate deposits were to the tune of Rs 42.55 crore. #include virtual="/incs/bottom.inc"-->