It is reported that cabinet approved the restructuring of Bird Group of Companies under ministry of steel.
The restructuring proposal envisages converting companies under BGC into Government companies / PSUs and vesting their management control of RINL in a subsidiary cum holding structure in order to make these companies economically viable and sustainable.
The government loan and accrued interest thereon would be waived off. The commercially unviable companies would be wound up and their employees will be adjusted in other sister companies under the Group or would be offered VRS. The restructuring proposal is mutually beneficial to both RINL and BGC.
The brief of the restructuring proposal is as under
1. Orissa Minerals Development Company Limited and Bisra Stone Lime Company Limited will be made subsidiary Companies of Eastern Investment Limited.
2. EIL will be made a subsidiary of RINL thus bringing EIL, OMDC and BSLC under the umbrella of RINL.
3. Winding up of Karanpura Development Company Limited and Scott & Saxby Limited. The employees will be adjusted in OMDC / BSLC or will be offered VRS.
4. Conversion of principal amount of government loan INR 86.79 crore given to BSLC into equity and waiver of outstanding interest accrued thereon INR 624.20 crore as on March 31st 2009
5. Write off of the principal amount of loan given to KDCL and its subsidiary SSL INR 8.06 crore along with outstanding interest accrued thereon INR 96.43 crore as on March 31st 2009
Thursday, September 10, 2009
Update on restructuring of Bird Group of companies
0 comments:
Post a Comment