HPL to face BIFR as lenders shirk from injecting more funds

Haldia Petrochemicals (HPL) is once again staring at the doors of Board for Industrial and Financial Reconstruction (BIFR) as its net worth, according to the latest financial statement, is around Rs 900 crore. HPL's net worth should be more than Rs 1,200 crore to save it from reporting to BIFR. According to a senior HPL official who was present at the last lenders meet in Mumbai told Business Standard that the lenders are still wary of injecting more funds and have asked the cash strapped petrochemical major to bring in more fund before they expect lenders' help. HPL suffers Rs 50-60 crore of cash loss every month and desperately needs non-interest bearing funds to the tune of Rs 1,000 crore. HPL has defaulted on working capital loan. In March 2012, HPL was in similar situation and was about to be reported to BIFR but the board then had approved conversion of a part of HPL's loan into equity and that saved the day for HPL.
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