Chatterjee exits as Haldia Petrochem CM: uncertainty shrouds recently approved Rs 1300 crore rights issue

04-Jan-14

Partha Chatterjee has exited from Haldia Petrochemicals Ltd (HPL) as chairman. Uncertainty shrouds the recently-approved Rs 1,300 crore rights issue, as per businessstandard.com. According to sources, West Bengal Chief Minister Mamata Banerjee is not keen to provide the required money of about Rs 520 crore for the proposed rights issue. The rights issue was planned for the company, which is struggling for working capital, as a last resort to infuse funds into the firm and save it from reporting to the Board for Industrial and Financial Reconstruction (BIFR) as a sick entity. In proportion to its stake in HPL, WBIDC has to infuse about Rs 520 crore for the rights issue or it has the option to renounce it in favour of the other existing stakeholder, possibly Indian Oil Corporation (IOC), which has about 9% stake in the company. However, this would lead to change in the company’s shareholding pattern, which is under dispute. Concerns abound that private promoter The Chatterjee Group could haul the matter to the courts if the shareholding pattern changes at this moment.