Promoter TCG open to infusing funds to cash-strapped Haldi Petrochem

25-Nov-13

Despite the legal wrangle surrounding the stake sale of Haldia Petrochemicals, Purnendu Chatterjee-led The Chatterjee Group (TCG) has reiterated it will infuse funds in the company to save it from going to the Board for Industrial and Financial Reconstruction (BIFR). Earlier, when HPL’s stake sale was being planned by the West Bengal government, TCG had proposed to infuse Rs 500 crore into HPL. TCG had maintained it would infuse the sum if it gets the management control. The West Bengal government chose to go ahead with the stake sale and accepted Indian Oil Corporation as final bidder to hand over its 40% stake. The HPL board on Friday cleared a proposal to make a preliminary notification to the BIFR. HPL has been facing acute shortage of funds, with lenders becoming reluctant to lend further. According to an early proposal, the government and lenders were supposed to bring Rs 100 crore and Rs 400 crore, respectively, into the company. None of this has fructified. TCG was also supposed to exercise its right of first refusal (ROFR) on November 10, but two court orders have changed the course of action. According to the terms of ROFR, the government could have sold the shares to IOC if TCG does not inform the state about its decision by then. However, the exercise got delayed owing to legal reasons. Another key decision is expected on 26 November, which would be key to future course of the stake sale.