CLB defers decision to allot HPL shares to IDBI by TCG

17-Jan-06

The Company Law Board has deferred until Jan 23, a decision on the allotment of Haldia Petrochem shares by The Chatterjee Group (TCG) to IDBI, the principal lender in the consortium of 52 institutions which had lent money to Haldia Petrochemicals (HPL). HPL has a debt burden of Rs 3,000 crore. Currently, the CLB wants the injunction order issued on August 4 2005 to be maintained, even though the stay on the allotment of shares means a loss of Rs 15 crore per month for the company. In its appeal, The Chatterjee Petroleum Mauritius Company had said if more shares were to be allotted to IDBI as the corporate debt restructuring package suggests, TCG would become minority stakeholders. However, IDBI argues, according to the CDR agreement, it should be allotted the shares and the injunction was unfair.