The Bombay High Court has given approval to National Organic Chemical Industries Limited (Nocil) to demerge two of its divisions. Nocil will demerge the assets of the petrochem and plastic products divisions. The assets and certain liabilities of its petrochemicals division will be demerged from the company and vested in Relene Petrochemicals Pvt. Ltd. and the assets of plastics products division will be demerged and vested in Nocil Petrochemicals Ltd. Nocil had recently reached an agreement with a Reliance group company to spin off its petrochemicals and plastic products divisions in favour of the Reliance group firm.
The Arvind Mafatlal group-promoted Nocil has been in financial and labour trouble for the past few years. The company shut down on April 16, 2002, after a series of failed restructuring proposals. The purpose of dividing the company into 3 divisions is mainly to give the petrochemical division to Reliance Industries, that has acquired the unit for Rs 315 crores. Nocil will not stand to gain much- except for Rs 15 crores nothing will come to Nocil.
10-Jun-05 
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