Domestic financial institutional lenders to Haldia Petrochemicals Ltd (HPL) are filing a petition before the Company Law Board (CLB), seeking a say in the hearing over Purnendu Chatterjee's opposition to issue of equity shares to state-owned IndianOil Corporation. As an extension to the allotment of 7.5% equity to Indian Oil, the CLB had put a bar on share issue to the financial institutions (FIs) and had asked the West Bengal government not to sell its 36% holding in the company, allowing Chatterjee to keep his majority partner status, till the September 26 final hearing.
The FIs, led by IDBI, are opposing this as the CDR (corporate debt restructuring) package approved by them envisaged issue of shares worth about Rs 135 crore. Since this has not happened, the interest component is getting affected. The CDR package also prohibits issue of any fresh equity. At the behest of Bengal government, the FIs are also planning to withdraw their consent to the pact wherein the state was to transfer Rs 155 crore equity to Chatterjee which would have increased Chatterjee's equity to 53%. Once FIs withdraw consent and the state does not transfer its equity, Chatterjee will be reduced to a minority partner with about 40% stake
30-Aug-05 
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