Swc Will Have To Submit Fin Recast Plan To Creditors

Shaw Wallace & Co (SWC) will have to submit its new financial recast plan to its creditors before it can be placed before the Calcutta High Court.

According to sources, the plan needs to be approved by 75 per cent of the companys creditors before the Calcutta High Court can review the detailed plan and give its approval.

It is believed that the whole process of getting the proposal approved by the Calcutta High Court will take some time as it is a long drawn process.

Moreover, matters related to the company did not appear in the cause list of the Calcutta High Court.

 

The advocate of the creditors are expected to mention the matters related to the company for listing on Tuesday before the company court.

In that case, matters related to the company, will come up for hearing on Wednesday.

Justice Altamash Kabir of Calcutta High Court had last month granted time to Shaw Wallace to pay its creditors by June 16.

The new financial package has been drawn up primarily to ease the liquor major out of its outstanding liabilities.

Several companies have filed winding up petitions against the company in the Calcutta High Court for non-payment of loans the company had taken as corporate loans with the promise to repay the amount by January 1996.

Some of the companies who had lent money to the company are Sociedede De Famento Industries (dues over Rs 6 lakh), Peerless Abasan Finance Ltd (over Rs 25 lakh), Sajjan India (Over Rs 15 lakh), Ranbaxy Laboratories (over Rs 50 lakh), Drap Leasing and Finance Company (Rs 8 lakh) and Etheberi Tea Company (Rs 25 lakh).

Others like Tolani Bulk Carriers Ltd, Yarn Synthetic Ltd, Praj Finance Ltd, Esjay Commerce Ltd, Videocon Leasing and Industrial Finance, Tapati Machines P Ltd, Empire Industries and Kanayan Digital System P Ltd had initiated proceedings for winding up of SWC.