Ahmedabad: Nirma, detergent manufacturer, is on track to gain control of the Ahmedabad-based packing industry major Shree Rama Multi Tech Ltd (SRMTL), said officials. Nirma has already acquired a stake of 24 per cent in the packaging company.
Full takeover of the company by Nirma has become a distinct possibility following two crucial decisions taken by SRMTL''s board March 15. In the board meeting, the firm agreed to work out a fresh scheme of arrangement to get over Rs 3.5 billion debt. To facilitate it, the company also decided to withdraw a compromise scheme from the Gujarat High Court, submitted in 2005. Both decisions have already been filed with the Bombay Stock Exchange (BSE).SRMTL got mired in financial difficulties since 2002 and later submitted a financial debt-restructuring scheme for approval by its lenders. It has also submitted an application under relevant provisions of the Companies Act before the Gujarat High Court, seeking its approval for the scheme. The scheme approved in 2005 envisaged a total payment of Rs.4.87 billion to the lenders to be paid between 2005 and 2014.
Full takeover of the company by Nirma has become a distinct possibility following two crucial decisions taken by SRMTL''s board March 15. In the board meeting, the firm agreed to work out a fresh scheme of arrangement to get over Rs 3.5 billion debt. To facilitate it, the company also decided to withdraw a compromise scheme from the Gujarat High Court, submitted in 2005. Both decisions have already been filed with the Bombay Stock Exchange (BSE).SRMTL got mired in financial difficulties since 2002 and later submitted a financial debt-restructuring scheme for approval by its lenders. It has also submitted an application under relevant provisions of the Companies Act before the Gujarat High Court, seeking its approval for the scheme. The scheme approved in 2005 envisaged a total payment of Rs.4.87 billion to the lenders to be paid between 2005 and 2014.
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